US Q2 GDP: Data from the US Bureau of Economic Analysis show that during the April to June quarter of the fiscal year 2024–25, the real gross domestic product (GDP) of the United States of America grew at a pace of 2.8%.
According to a government announcement, the rise in consumer expenditure on goods and services – with a particular emphasis on housing and utilities, health care, and recreational services—reflects the increase in the real GDP.
According to the data, the growth in the goods section was driven by the following: furniture and durable household equipment, motor cars and parts, recreational goods and vehicles, gasoline, and other energy products.
The second quarter had a $560 billion growth in the current dollar GDP, or 5.2% yearly, to $28.63 trillion. First-quarter GDP growth in 2024 was 4.5%, or $312.2 billion, over the previous year.
In contrast to a 3.1% increase in the first quarter, the price index for the gross value of domestic purchases increased by 2.3% in the second quarter. Compared to the previous quarter, when it increased by 3.4 percent, personal consumption expenditure (PCE) increased by 2.6%. The US government statistics release stated that the PCE price index increased by 2.9% as opposed to a 3.7% increase in the previous quarter.
According to the Department of Commerce, “an upturn in private inventory investment and an acceleration in consumer spending” were the main causes of the economic acceleration. “Partly offset by a downturn in residential fixed investment,” they stated.
According to Oxford Economics analyst Matthew Martin, “we see consumption continuing to be the engine of the economy, continuing to keep economic growth on a relatively strong growth path of around two per cent,” AFP was informed.
Regarding the US Federal Reserve’s rate-reducing strategy, he told AFP that it is a strong case to start cutting the rate in September and continue doing so at every other meeting after that.
(With inputs from agencies)