U.S. Growth For Last Quarter Revised Up To A Solid 3% Annual Rate

The US economy grew last quarter at a healthy 3% annual pace, fueled by strong consumer spending and business investment, the government said in an upgrade of its initial assessment, Paul Wiseman reported for the Associated Press (AP).

The second-quarter growth marked a sharp acceleration from a sluggish 1.4% growth rate in the first three months of 2024.

The Commerce Department had previously estimated that the nation’s gross domestic product (GDP)—the total output of goods and services—expanded at a 2.8% rate from April through June.

The second-quarter growth marked a sharp acceleration from a sluggish 1.4% growth rate in the first three months of 2024.

Consumer spending, which accounts for about 70% of US economic activity, rose at a 2.9% annual rate last quarter. That was up from 2.3% in the government’s initial estimate. Business investment expanded at a 7.5% rate, led by a 10.8% jump in investment in equipment.

The recent report reflected an economy that remains resilient despite the pressure of continued high interest rates.

The state of the economy is weighing heavily on voters ahead of the November presidential election. Many Americans remain exasperated by high prices even though inflation has plummeted since peaking at a four-decade high in mid-2022.

But measures of consumer confidence by the Conference Board and the University of Michigan have shown a recent uptick in confidence in the economy.

“The GDP revisions show the US economy was in good shape in mid-2024,’’ said Bill Adams, chief economist at Comerica Bank.