U.S. GDP Growth Accelerates More Than Expected In Q2

Economic growth in the U.S. accelerated by more than expected in the second quarter of 2024, according to a report released by the Commerce Department on Thursday.

The report said real gross domestic product surged by 2.8 percent in the second quarter after jumping by 1.4 percent in the first quarter. Economists had expected GDP to increase by 2.0 percent.

The Commerce Department said the GDP growth primarily reflected increases in consumer spending, private inventory investment, and nonresidential fixed investment.

Compared to the first quarter, the acceleration in real GDP in the second quarter primarily reflected an upturn in private inventory investment and an acceleration in consumer spending, the Commerce Department said.

On the inflation front, the report said the personal consumption expenditures price index increased 2.6 percent in the second quarter compared with an increase of 3.4 percent in the first quarter.

Excluding food and energy prices, the PCE price index increased 2.9 percent in the second quarter compared with an increase of 3.7 percent in the first quarter.

“The inflation data is consistent with recent news showing a downward trend, which should provide enough confidence for the Federal Reserve to cut rates in September,” said MBA SVP and Chief Economist Mike Fratantoni.