Washington. The U.S. economy grew faster than initially expected in the second quarter on strong consumer spending, while corporate profits rebounded, which should help sustain the expansion.
Gross domestic product (GDP) grew at a 3 percent annualized rate last quarter, the Commerce Department’s Bureau of Economic Analysis reported Thursday in its second estimate of second-quarter GDP. This is an upward revision from the 2.8 percent rate recorded last month.
The economy grew at a pace of 1.4 percent in the first quarter.
Consumer spending, which accounts for more than two-thirds of the economy, rose at an upwardly revised 2.9 percent pace. Growth of 2.3 percent had been previously reported. This offset declines in business investment, exports and private inventory investment.
Spending is supported in part by wage increases, but momentum is slowing as the labor market loses momentum. Personal income rose by $233.6 billion in the second quarter, a downward revision of $4 billion from the previous estimate.
Corporate profit, including adjustments for inventory valuation and capital expenditure, rose $57.6 billion, after falling $47.1 billion in the first quarter.
Profits at domestic financial firms rose by $46.4 billion, while those at non-financial institutions rose by $29.2 billion, more than offsetting a $18 billion decline in profits at the rest of the world.
#Consumer #spending #boosts #GDP
– 2024-09-01 22:04:28
