economy
U.S. Economy Grows at 1.5% Rate in Second Quarter
The report captures a three-month stretch shaped by the Middle East conflict and a surge in energy prices.
TL;DR
- U.S. economy grew at a 1.5% annualized rate in the second quarter.
- Consumer spending and business investment, boosted by AI spending, were the main growth engines.
- The growth rate was slightly below the 1.8% anticipated by economists.
- Real final sales to domestic purchasers rose robustly at a 3.9% annualized pace.
- Consumer spending increased at a 3.2% annualized rate, while business investment grew by 8.4%.
- Trade and business inventories detracted from headline GDP growth.
- Federal Reserve chairman Kevin Warsh noted the economy's 'impressive resilience' and 'striking feature' of strong business investment.
- The Fed kept interest rates on hold due to elevated inflation and resilient growth.
- The PCE price index showed a slight monthly decrease but a 3.7% annual increase; core PCE also saw modest growth.
- Personal income growth and consumer spending slowed from the prior month.