US economic growth accelerates to 2.8 percent in the second quarter

WASHINGTON – The U.S. economy grew at a robust 2.8 percent annual rate in the second quarter of 2024, capping two years of robust expansion despite some signs of slowdown.

This came in a statement issued by the US Department of Commerce on Thursday, at a time when Wall Street analysts’ expectations indicated that the economy would grow by 2.1 percent during the second quarter.

Consumer spending and business investment drove nearly all of the growth in the second quarter, according to Commerce Department data, and continued government spending also helped support the GDP reading.

However, a slowdown in homebuilding and other residential investment, and a surge in imports, has dampened economic growth in the construction sector, a turnaround after three straight quarters of strong growth.

“GDP came in much stronger than expected,” Matt Perron, head of global solutions at Janus Henderson Investors, wrote in a note to clients.

Americans are spending heavily on items like cars, recreational vehicles and furniture, according to the Commerce Department, but Wall Street economists say those spending jumps are unlikely to be sustainable, “as income growth has weakened, COVID-19 savings have run out and more people have fallen behind on their loan payments.”

Anatolia