The US economy grew more slowly in the second quarter than previously expected
The US economy grew more slowly in the second quarter than previously expected – a good sign for the Federal Reserve Try to calm down the request To reduce price increases.
Gross domestic product, the broadest measure of economic output, rose at an annual rate of 2.1% in the second quarter, according to the Commerce Department’s second estimate, released Wednesday morning. This is a slightly slower pace 2.4% of its management capacity at the start.
The second estimate took into account the increase in consumer spending, government expenditures and exports, compared to the initial estimate. Meanwhile, business investment and inventories were revised downward. Commercial investment – referred to as non-residential fixed investment – was revised to a growth rate of 6.1%, compared to 7.7% in the first estimate. Fixed residential investment that reflects Conditions in the US housing marketIts impact on growth was less than previously expected.
Economic growth in the second quarter was mostly broad-based, but there were some signs of weakening demand for commodity purchases and imports. Consumer spending, which accounts for about 70% of economic output, was revised up slightly in the second estimate.
The Fed is watching GDP closely
Economists widely expected the summer to be strong, as Americans spend big on travel, dining and other personal experiences. retail spending Jump in July Like the movie “Barbie”. It became a smash hit And Taylor Swift Major stadiums are sold out across the United States. The Commerce Department will release July figures on consumer spending, which includes retail sales, on Thursday.
The US economy has remained brisk during the summer months, but that strength is notable It kept some Fed officials on their toes When they met in July to discuss monetary policy. Choose the central bank Raising interest rates by a quarter of a percentage point to its highest level in 22 years.
Federal Reserve Chairman Jerome Powell He said last week that there could be more rate hikes Going down to the pike if the economy doesn’t slow down.
“Additional evidence of sustained above-trend growth could jeopardize further progress on inflation and could warrant further monetary tightening,” Powell said at the Fed’s annual economic symposium in Kansas City.
The Federal Reserve Bank of Atlanta currently estimates that GDP growth will accelerate sharply to an annual rate of 5.9% in the third quarter.
This story is developing and will be updated.
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