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US Economy Surpasses Growth Expectations
The US economy grew 2.8% in Q2 2024, surpassing the 2.0% forecast, with strong consumer spending and investment.
US GDP grew at 2.8% annualized rate in Q2 2024, surpassing the 2.0% forecast
Initial jobless claims dropped to 235,000, below the expected 238,000
US GDP surges at an annual rate of 2.8% in Q2 against 2% forecast
The US economy demonstrated robust growth in the second quarter of 2024, with the gross domestic product (GDP) expanding at an annualized rate of 2.8%, according to the advance estimate released today. This figure significantly exceeds the anticipated 2.0% growth and doubles the 1.4% pace recorded in the first quarter.
The stronger-than-expected GDP increase was primarily driven by rises in consumer spending, private inventory investment, and nonresidential fixed investment. Additionally, an uptick in imports, which are subtracted in the GDP calculation, contributed to this performance.
This sharp acceleration in economic growth, alongside moderating inflation metrics, paints an optimistic picture for the US economy. The deceleration in price indexes indicates easing inflationary pressures, potentially paving the way for the Federal Reserve to consider rate cuts in the coming months.
US initial jobless claims fall to 235,000 vs. expected 238,000
In labor market news, initial jobless claims in the US fell by 10,000 to 235,000 for the week ending July 20, slightly below the forecast of 238,000. The four-week moving average of initial claims remained relatively steady, reflecting ongoing resilience in the labor market.
