US Economy Grows 3% in Second Quarter

The US economy grew at a robust 3% annual rate in the second quarter of 2024, exceeding Wall Street's expectations of 2.9%. This growth, driven by strong consumer spending and business investment, marks a significant recovery from the 1.6% growth seen in the first quarter. The rise in GDP was accompanied by a notable increase in corporate profits, with domestic nonfinancial corporations seeing a revision up of $79.6 billion. Despite the positive trends, the job market has shown signs of weakness, with average job additions dropping to 116,000 per month from June to August, and the unemployment rate rising to 4.2%. The Federal Reserve's recent interest rate cuts may have contributed to this economic resilience, despite previous hikes aimed at curbing inflation, which has now moderated to 2.5%. Overall, the latest data highlights a complex economic landscape characterized by growth in certain sectors while facing challenges in employment.