US economy expands at sluggish 1.5% pace in second quarter, but consumer spending stayed strong
Consumer spending rose 3.4% while imports jumped 12.5% and cut 1.64 percentage points from growth, the Commerce Department said.
- The Commerce Department reported Wednesday that gross domestic product grew at a sluggish 1.5% pace from April through June, decelerating from the 2.1% growth rate during the January-March period.
- Still, consumer spending increased at a healthy 3.4% annual clip, up from 0.5% in the January-March period, accounting for about 70% of American economic activity.
- Imports rose at a 12.5% annual pace from April through June, partly due to a surge in shipments of computer chips supporting Big Tech investment, which reduced growth.
- Business investment was up, reflecting the ongoing technology expansion, while the American economy has proven resilient despite fighting with Iran and the spike in energy prices it caused.
- The report was the second of three Commerce Department looks at second-quarter GDP growth, with the final report due Sept. 30.
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US GDP Expands 1.5 Percent in 2nd Quarter on Stronger Consumer Spending, Business Investment
The U.S. economy registered modest growth in the second quarter on stronger-than-expected consumer spending and business investment, according to the Bureau of Economic Analysis’s second estimate released on Aug. 26. Growth in the April–June period was 1.5 percent, unchanged from the initial estimate released last month. This was fueled by consumer spending, exports, and business investment, which helped offset the 1 percent decline in governme…
The BEA’s second estimate left annualized growth unchanged, but corrected upwards all price indices in the quarter.
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