Economy in Q2 Grows Stronger Than Forecast

Washington — The US Department of Commerce said on Thursday (29/8) that US economic growth in the second quarter of this year was stronger than expected, supported by stronger than previously expected consumer spending. The world's largest economy grew by 3.0 percent annually in the April-June period, higher than the previous estimate of 2.8 percent. Analysts expect no revisions to the figure. “This update primarily reflects an upward revision to consumer spending,” the Commerce Department said. Unexpectedly high consumption growth – even amid high interest rates – has helped strengthen the US economy in recent times. However, with the reduction in household savings accumulated during the COVID-19 Pandemic era, consumption is anticipated to decline. In the latest revision, higher spending was partly offset by lower revisions in other areas such as business investment, exports and government spending. However, imports were revised higher. The 3.0 percent figure in the second quarter of this year was an increase from 1.4 percent growth in the first quarter. Although the Federal Reserve, which has been raising interest rates rapidly to combat surging inflation in 2022, is expected to deliver its first post-pandemic rate cut in September, that could provide a boost to the economy. …

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Economy in Q2 Grows Stronger Than Forecast

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