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

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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.

Read the full story on AP News right here.

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

Categories: Regional and US News