| The economy grew a robust 2.4% in the second quarter. That was faster than the 2% growth in the first quarter.
Why it matters: The ongoing strength of the economy in the face of high inflation, higher interest rates, and tightening financial conditions continues to astound.
Details:
- Growth was led by consumption, which rose by 1.6%. Spending on services, which rose 2.1%, drove that increase.
- Business investment was also strong, rising by 5.7%. Businesses invested heavily in both buildings and equipment. Inventory build-up added modestly to growth too.
- Exports and imports both fell considerably – by 11% and 8% respectively. The fall in exports is likely due to a weaker global economy and a strong dollar. The drop in imports is more surprising. Imports of both goods and services fell.
Big picture: There will be revisions to this data, so this initial reading could change. For now, the economy did better than expected in the second quarter. |
