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The US economy accelerated in the second quarter: GDP growth was 3%


Août, 29 2024
watermark Economic news

The U.S. Department of Commerce revised economic growth data for the second quarter and reported that GDP grew by 3% year-on-year. Earlier it was reported an increase of 2.8%, which did not meet the expectations of experts. For comparison, GDP growth was 1.4% in the first quarter.


Consumer spending, which accounts for two thirds of U.S. GDP, has become a key driver of growth. They increased by 2.9% (against a preliminary estimate of 2.3%). Government spending also contributed to the growth, which increased by 2.7% (an increase of 3.1% was previously reported). Business investments in fixed assets amounted to 4.6% (in a preliminary estimate — 5.2%).


Exports increased by 1.6% (preliminary estimate — 2%), imports — by 7% (6.9%). US companies showed a 1.7% increase in corporate profits to $2.774 trillion after falling 2.7% a quarter earlier.


There is also a positive trend in inflation. The PCE consumer price index for the second quarter was 2.5% (preliminary data — 3.4%). The core PCE Core index, which does not take into account food and energy prices, increased by 2.8% (the previous estimate was 3.7%).


It is important to note that the data presented is the second estimate of the change in US GDP. The final data for the second quarter will be published on September 26.


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