US economy unexpectedly accelerated to a 2.4% growth rate in April-June quarter despite Fed hikes

The Associated Press

WASHINGTON (AP) – The U.S. economy surprisingly accelerated to a 2.4% annual growth rate from April through June, showing continued resilience in the face of steadily higher interest rates resulting from the Federal Reserve’s 16-month-long fight to bring down inflation.

The gross domestic product – the economy’s total output of goods and services – picked up from the 2% growth rate in the January-March quarter. Last quarter’s expansion was well above the 1.5% annual rate that economists had forecast. Driving the gain was a burst of business investment, which surged at a 5.7% annual pace, the fastest rate since late 2021.

Companies plowed more money into factories and equipment. Increased spending by state and local governments also helped fuel growth.

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7/27/2023 9:39:35 AM (GMT -5:00)