US economic growth accelerates to 3% in Q2 2024

The US economy grew more than expected in the second reading for the second quarter of 2024, beating initial estimates, which backs the chances that the world's largest economy will not slide into recession, but may push the Federal Reserve to maintain the current monetary tightening cycle for a longer period.

According to data released Thursday by the Bureau of Economic Analysis, the US real GDP grew by 3% year-on-year in Q2 2024.

This is compared with growth of 1.4% in the first quarter, and 2.8% in the preliminary reading for Q2 2024. This acceleration was driven by increased consumer spending, private investment in inventory, and non-residential fixed investment.

The data also showed that GDP at current prices grew by 5.5%, or $383.2 billion, to $28.65 trillion, an increase of $23.2 billion from the previous reading.

Data for personal consumption expenditures was revised down 0.1% to a 2.5%, while the Personal Consumption Expenditure Index – the Fed's preferred gauge for inflation - slowed to 2.5% from 2.6% in the initial reading.