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US Economy Grew 3% in Second Quarter, Exceeding Expectations

Revised data shows stronger growth in 2023, driven by robust consumer spending and business investment.

People display merchandise for pedestrians around Times Square, in New York, U.S., December 25, 2023. REUTERS/Eduardo Munoz/File Photo
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A woman shops for groceries at El Progreso Market in the Mount Pleasant neighborhood of Washington, D.C., U.S., August 19, 2022. REUTERS/Sarah Silbiger/File Photo

Overview

  • The U.S. economy expanded by 3% annually in Q2 2024, maintaining the previous estimate.
  • First-quarter GDP growth for 2024 was revised upward to 1.6%, reflecting stronger early-year performance.
  • Consumer spending and business investment were key drivers, with consumer spending growing at a 2.8% pace.
  • Corporate profits saw a significant upward revision of $288.5 billion, or 8.9%, in 2023.
  • The Federal Reserve cut its benchmark interest rate by 50 basis points last week, the first reduction since 2020.