RBC chief economist Frances Donald speaks on the Fed Reserves fee reduce choice and financial coverage on Making Cash.
The U.S. economic system accelerated within the second quarter because the Commerce Division launched its second revision of actual gross home product (GDP) progress for the newest quarter.
The Bureau of Financial Evaluation (BEA) on Thursday launched its third and closing estimate of second-quarter GDP, which confirmed the economic system grew at an annualized fee of three.8% within the April via June interval.
That determine was hotter than the three.3% estimate of economists polled by LSEG, and got here in increased than the Commerce Division’s preliminary second-quarter GDP estimate of three%.
BEA defined that the GDP enhance within the second quarter “primarily reflected a decrease in imports, which are a substraction in the calculation of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports.”
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The U.S. economic system grew at a quicker than anticipated tempo within the second quarter. (David L. Ryan/The Boston Globe through Getty Pictures / Getty Pictures)
The revision of second-quarter progress upward by 0.5 proportion factors from the BEA’s second estimate primarily stemmed from increased client spending than beforehand reported.
Actual closing gross sales to personal home purchasers, which is the sum of client spending and gross mounted non-public funding, was revised up by 1 proportion level to a achieve of two.9% within the second quarter.
The expansion within the second quarter follows a GDP contraction within the first quarter that was revised downward from a contraction of 0.5% to 0.6%, which leaves GDP progress within the first half of 2025 at an annualized fee of about 1.6%.
BEA attributed the upturn within the second quarter to a lower in imports and an acceleration in client spending, which had been partly offset by a decline in funding.
It is a growing story. Please verify again for updates.
