Economic growth increased at a faster pace than expected during the second quarter of 2024, rising 2.8% after climbing a revised 1.4% during the first quarter of 2024, according to CNBC. Economists had been expecting growth of 2.1%.
Strong consumer spending, government spending and a sizeable inventory build reportedly helped to boost the GDP in the second quarter. Consumer spending increased 2.3%, and government spending rose 3.9% at the federal level.
The personal consumption expenditures price index—a key inflation variable for the Federal Reserve—rose at a 2.6% annualized pace for the second quarter, which is down from 3.4% in the first quarter.
