WASHINGTON (FFN) – The U.S. economy expanded more sharply in the second quarter than initially expected, according to a report from AP.
The Gross Domestic Product (GDP) of the United States grew by 3% year-over-year in the three months from April to June 2024, following a 1.4% increase in the previous quarter. This figure was revised up from an earlier estimate of 2.8%, according to the U.S. Bureau of Economic Analysis (BEA). Economists had expected the BEA to confirm its preliminary estimate.
The primary driver of this growth was consumer spending, which accounts for 70% of economic activity in the U.S. Consumer spending increased by 2.9% year-over-year in Q2, compared to the initial estimate of 2.3%. Business investments also saw a significant rise, growing by 7.5%, with investments in equipment jumping by 10.8%.
| Indicator | Q1 2024 | Q2 2024 (Initial Estimate) | Q2 2024 (Revised) |
|---|---|---|---|
| GDP Growth (YoY) | 1.4% | 2.8% | 3.0% |
| Consumer Spending Growth (YoY) | – | 2.3% | 2.9% |
| Business Investment Growth (YoY) | – | – | 7.5% |
| Equipment Investment Growth (YoY) | – | – | 10.8% |
Key Words: U.S. economy, GDP, consumer spending, business investments, BEA, economic growth
