Second quarter GDP

The U.S. economy unexpectedly grew at an annualized rate of 2.8% in the second quarter of 2024, significantly surpassing the expected 2% and doubling the previous quarter's 1.4% growth. This growth was largely driven by a 2.3% increase in consumer spending, alongside business investment rising 5.2%. President Biden celebrated the results as evidence of a resilient economy, linking the growth to his administration's economic policies. However, despite the positive GDP figures, personal income growth weakened, with the personal savings rate falling to 3.5%, indicating potential financial strain on consumers. Additionally, the housing market remains sluggish due to high interest rates and elevated prices, contributing to a mixed outlook for the economy moving forward. Analysts caution that while the growth is promising, challenges persist, including high borrowing costs and consumer confidence issues.