- GDP increased at a 2.4% annualized rate in the second quarter, surpassing the earlier estimated growth of 2%. The growth was primarily driven by strong consumer spending, along with increases in nonresidential fixed investment, government spending, and inventory growth.
- The Commerce Department inflation indicator increased by 2.6%, down from a 4.1% rise in Q1 and well below the estimate for a gain of 3.2%. This figure was also below the anticipated gain of 3.2%.
Why it matters
The second-quarter GDP growth rate exceeding expectations and the decline in the inflation gauge are positive indicators for the U.S. economy. The robust consumer spending and other contributing factors suggest that the economy is showing resilience and is not displaying any significant signs of recession.
