At 2.8%, US Economy Sees Unexpected Growth In Second Quarter [Video]

The US economy grew faster than expected in the second quarter, driven by strong consumer spending and business investment, while inflation pressures eased, maintaining expectations of a September interest rate cut from the Federal Reserve. 

According to the Commerce Department’s advance report on second-quarter GDP, growth was also bolstered by inventory building and increased government spending.

However, the housing market’s recovery stalled, slightly hindering the economy, and the trade deficit widened, reducing GDP growth. Despite significant interest rate hikes by the US central bank in 2022 and 2023, the economy continues to outperform its global counterparts, thanks to a robust labour market.

In the first quarter, the economy grew at a 1.4 per cent rate, while US central bank officials view a 1.8 per cent pace as non-inflationary. Nonetheless, this growth is slower than the 4.2 per cent pace recorded in the second half of the previous year. Consumer spending, …