The U.S. economy grew at a faster-than-expected pace in the second quarter of 2023, adding to signs that the threat of a recession has faded in the immediate term.
The Bureau of Economic Analysis’s advance estimate of second quarter U.S. gross domestic product (GDP) showed the economy grew at an annualized pace of 2.4% during the period, faster than consensus forecasts. Economists surveyed by Bloomberg had the US economy growing at an annualized pace of 1.8% during the period.
The reading came in higher than first quarter GDP, which was revised up to 2%.
Increases in consumer spending and nonresidential fixed investment, which includes spending on commercial real estate and equipment, led the growth of the economy in the second quarter, according to the BEA. Housing and utilities as well as healthcare led services spending. In goods spending, recreational goods, vehicles and gasoline led the gains.
The GDP release was just one of several upbeat prints released on Thursday morning. The Department of Labor announced 221,000 people filed jobless claims in the week ending July 22, the lowest number of claims since February. Meanwhile, data from the U.S. Census Bureau showed durable goods orders increased 4.7% in June. Economists surveyed by Bloomberg had expected a 1.3% increase for the month.
“Quirky seasonal adjustment factors may lead to outsized revisions down the road, but these data suggest the economy was solid in Q2,” Oren Klachkin, Oxford Economics lead U.S. economist, wrote on Thursday. “The economy withstood pervasive pressures from persistent recession fears, elevated interest rates, the Fed’s hawkish policy tilt and tighter bank lending standards.”
Click here to see the full report from Josh Shafer at Yahoo Finance.
