The US Commerce Department said on August 29 that the world's largest economy grew more than initially estimated in the second quarter of this year, thanks to stronger-than-expected consumer spending.
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| The US economy grew stronger than expected in the second quarter of 2024. (Source: Forbes) |
The world's largest economy grew 3% year-on-year in the second quarter of 2024, higher than the previously estimated growth of 2.8%.
The updated economic growth figure was largely due to upward revisions to consumer spending, the Commerce Department said.
Unexpectedly strong consumer activity — even in the face of high interest rates — has helped boost the US economy recently.
In addition, spending and imports were revised up, but many other areas such as business investment, exports and government spending were revised down.
With a 3% increase in the second quarter of this year, the US economy improved compared to the 1.4% increase in the first quarter.
However, Mr. Ryan Sweet, chief US economist at Oxford Economics, said that the upward revision of the Gross Domestic Product (GDP) figure is unlikely to change short-term forecasts for the US economy.
The world's largest economy is expected to "stabilize at a more sustainable pace of growth for the rest of this year and into early next year," he said.
In addition, the updated figures "will not impact the outcome of the US Federal Reserve's September meeting because the bank's focus is on the labor market."
Although the Fed has been raising interest rates rapidly to curb rising inflation in 2022, the bank is expected by most analysts to cut rates for the first time since the pandemic in September, which could boost the economy.
According to CME Group's FedWatch tool, the market is pricing in a Fed rate cut of at least 0.25 percentage point, and possibly even 0.5 percentage point, in September.
Source: https://baoquocte.vn/them-tin-vui-den-voi-nen-kinh-te-my-fed-sap-co-dong-thai-thuc-day-tang-truong-284406.html
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