US Economy Expanded 2.8 Percent in 2nd Quarter, Fueled by Consumer Spending

The U.S. economy continued to expand in the second quarter, topping economists’ expectations and shrugging off the Federal Reserve’s 23-year high interest rates. According to the advanced estimate from the Bureau of Economic Analysis (BEA) on July 25, the U.S. economy grew at an annualized pace of 2.8 percent in the April–June period, up from 1.4 percent in the first quarter. The better-than-expected reading was fueled by a 2.3 percent gain in consumer spending for goods and services, contributing 1.57 percent to the final reading. Consumer spending accounted for roughly 68 percent of growth in the economy last quarter. Additionally, the expansion reflected a 3.6 percent increase in private inventory investment in the retail and wholesale trade industries and a 5.2 percent boost in nonresidential fixed investment. These contributed 1.46 percent to the GDP rate....