US economy grew a solid 2.2% in the second quarter, government says, upgrading previous estimate
The United States economy expanded at a solid 2.2% annual pace from April through June, driven by strong consumer spending and business investment, according to a government report. This second-quarter growth rate marks an upgrade from the Commerce Department's previous estimate of 1.5% and outpaced expectations from economists who predicted little or no change. While growth decelerated from the 2.5% rate recorded in the first quarter, consumer spending surged at a healthy 3.8% annual pace, recovering significantly from 0.7% in the January through March period.
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- ✓ The US economy grew at a solid 2.2% pace from April through June.
- ✓ Growth in gross domestic product decelerated from a 2.5% pace in the first quarter.
- ✓ Consumer spending increased at a healthy 3.8% annual pace, up from 0.7% in the January-March period.
- ✓ The Commerce Department reported the revised figures on Wednesday.
What changed
The Commerce Department revised the second-quarter gross domestic product growth rate upward to 2.2%, surprising economists who anticipated no change from the earlier 1.5% estimate.
Live updates
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US Economy Grew Solid 2.2% in Second Quarter
The United States economy expanded at a solid 2.2% annual pace from April through June, driven by strong consumer spending and business investment, according to a government report. This second-quarter growth rate marks an upgrade from the Commerce Department's previous estimate of 1.5% and outpaced expectations from economists who predicted little or no change. While growth decelerated from the 2.5% rate recorded in the first quarter, consumer spending surged at a healthy 3.8% annual pace, recovering significantly from 0.7% in the January through March period.
Why it matters
Gross domestic product measures the total output of goods and services produced by the nation. Strong household spending has been supported by a robust stock market fueled by enthusiasm for artificial intelligence, boosting wealth for affluent investors. This positive economic momentum coincides with easing oil prices and declining interest rate hike bets.
What is confirmed
- The US economy grew at a solid 2.2% pace from April through June.
- Growth in gross domestic product decelerated from a 2.5% pace in the first quarter.
- Consumer spending increased at a healthy 3.8% annual pace, up from 0.7% in the January-March period.
- The Commerce Department reported the revised figures on Wednesday.
What to watch next
- Monitor upcoming third-quarter GDP readings and consumer spending reports to see if the economic pickup continues.
- Watch for subsequent Federal Reserve interest rate decisions influenced by growth and inflation figures.
confidence 100%Sources used for this update (13)
- AP News — US economy grew a solid 2.2% in the second quarter, government says, upgrading previous estimate
- CNN — US economy grew 2.2% this spring, more than initially estimated
- WSJ — Growth, Inflation Figures Show Signs of an Economic Pickup
- Reuters — US second-quarter GDP revised higher amid robust consumer spending
- marketplace.org — How long can the economy keep growing?
- Fox Business — US economy grew at a faster pace than expected in second quarter
- WSJ — Stock Futures Rise as Oil Prices, Rate Hike Bets Ease
- Yahoo Finance — Masco Corporation (MAS) Stock Forecasts
- finance.yahoo.com — US economy grew a solid 2.2% in the second quarter ...
- abcnews.com — US economy grew 2.2% in the second quarter, govt says ...
- www.bnnbloomberg.ca — US economy grew a solid 2.2% in the second quarter ...
- www.livemint.com — US economy grew at 2.2% in second quarter, government says - Mint
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