US GDP Grew 2.8% in Second Quarter, More Than Expected
Summary from the AllSides News Team
In the second quarter of 2024, the economy grew by 2.8%, which was higher than most economists expected.
Key Details: The Gross Domestic Product (GDP) - the value of all services and goods produced in the United States adjusted for inflation - grew due to businesses building up their inventories and consumers increasing their spending, the government reported. However, the report also showed that the personal savings rate continues to decrease, down to 3.5% from 3.8% in the first quarter of 2024.
Key Quote: "The U.S. economy is much stronger than people realize and to the extent that markets were worried about a growth slowdown, they should breathe a sigh of relief after this morning’s GDP number," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
For Context: The number is an "advance" estimate by the U.S. Department of Commerce and may be revised later. In Q1 of this year, the government initially said the GDP grew 1.6%, but later revised that down to 1.4%.
How the Media Covered it: Axios (Lean Left bias) reported that the new data increases confidence that the economy is experiencing growth along with cooling inflation, projecting a "soft landing" and showing the purported error of recession forecasts. Fox Business (Lean Right bias) reported that job growth is moderating and that the housing market is "trapped in a prolonged downturn," signs that economic growth is still slowing due to tighter monetary policies.
Featured Coverage of this Story
From the Right
US economy grew faster than expected during the second quarter
The U.S. economy grew at a faster pace than expected at the beginning of 2024 as consumers continued to open their wallets despite ongoing inflation and high interest rates.
Gross domestic product, the broadest measure of goods and services produced across the economy, grew by 2.8% on an annualized basis in the three-month period from April through June, the Commerce Department said in its first reading of the data on Thursday.
That is much higher than the 2% increase forecast by LSEG economists and the 1.4% pace seen during the first quarter. ...
From the Left
U.S. economy surprises with strong 2.8% growth rate in second quarter
The U.S. economy grew at a 2.8% annualized rate in the second quarter—a faster rate than economists expected as consumer spending increased and businesses built up inventories, the Commerce Department said on Thursday.
Why it matters: The new data raises confidence the economy has achieved a "soft landing" — healthy economic growth alongside cooling inflation.
Economists expected an annualized growth rate of 1.9% last quarter. The economy grew at a 1.4% rate in the first three months of the year.
Driving the news: The accelerated growth stemmed from a jump in inventory investment and consumer spending.
From the Center
U.S. Economy Grew a Robust 2.8% in Second Quarter
The U.S. economy accelerated in the second quarter as consumers increased their spending, businesses invested more in equipment and stocked inventories, and inflation cooled.
Gross domestic product—the value of all goods and services produced in the U.S., adjusted for inflation and seasonality—rose at an annual rate of 2.8% for April through June, the Commerce Department said Thursday. That was more than the 1.4% rate during the first quarter, and well above the 2.1% rate economists had expected before the report.
Household spending, the main driver of the U.S. economy, increased at...
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