US economy posts forecast-beating 2.8% growth in Q2 2024

The US economy grew faster than expected in the preliminary reading for the second quarter of the year, lifted by increased consumer spending, inventory investment, and non-residential fixed investment, paired with lower imports.

According to data from the Bureau of Economic Analysis released today, July 25, the US real gross domestic product (GDP) climbed by 2.8% on an annual basis in Q2 2024, compared to 1.4% growth in the first quarter of the year.

This data, which exceeded expectations of 2.1% growth in Dow Jones estimates, indicated that current prices advanced by 5.2% annually, or $360 billion, to amount to $28.63 trillion in the second quarter of the uear.

In terms of inflation indicators, the GDP price index jumped by 2.3% for the same period, after surging by 3.1% in the first quarter of 2024.

As for the Federal Reserve's preferred inflation gauge, the personal consumption expenditures price index added 2.6% annually, compared with 3.4% growth in Q1 2024. However, its core counterpart, which excludes volatile food and energy prices, slowed to 2.9% in Q2 2024 from 3.7% a quarter earlier.