Economic Growth Continues
The US economy grew at an annualized rate of 2.4% in the second quarter of the year, according to preliminary data released yesterday. The figure exceeded both analysts' estimates of 1.7% and first-quarter growth, which came in at 2%.
The overall growth was attributed to a 7.7% year-over-year rise in investments by businesses in the second quarter, up from 0.6% in the previous quarter, as well as a 1.6% year-over-year rise in consumer spending—which accounts for two-thirds of gross domestic product. See other takeaways from the report here.
Analysts say the data show resiliency in the economy amid a strong labor market, with average hourly earnings rising 4.4% year-over-year last month and as annual inflation growth continues to slow following the Federal Reserve's interest rate hikes. The Fed this week raised rates by a quarter point as part of its campaign to bring annual inflation to its 2% target. In June, annual inflation rose 3%, the smallest year-over-year increase since March 2021.
The total US GDP is $26.8T. See historical data here.