U.S. Economy Outperforms Expectations with 3% GDP Growth in Q2 2024
The Commerce Department reported Thursday that the United States economy grew by three percent during the second quarter of 2024, better than initial projections.
GDP Grows Three Percent
The gross domestic product (GDP) increase is attributable to consumer spending and business investment. Prior to the Thursday revision, the Commerce Department estimated that GDP would grow by 2.8 percent from April through June. This indicator accounts for the total output of goods and services.
The Second Quarter’s Growth Is Robust And Promising For The Economy
In the first quarter, the U.S. experienced a sluggish GDP growth rate of only 1.4 percent.
Consumer And Business Spending Saw Significant Increases In The Second Quarter
Consumer spending rose 2.9 percent, and business spending rose 7.5 percent, including a 10.8 percent increase in spending on equipment.
Despite Economic Pressures, The GDP Report Is A Positive Indicator
The positive GDP report is the latest optimistic indicator of a healthy economy despite all the pressures facing consumers and businesses, from high interest rates, inflation, high housing prices, recent troubling job numbers, and reports of low savings balances and high debt figures for most Americans.
The Economic Forecast Will Play A Key Role In The Presidential Election Cycle
The economic forecast will remain prominently in the remaining ten weeks of the Presidential election cycle.
The Federal Reserve Has Managed To Bring Down Inflation Without Triggering A Recession
Although the Federal Reserve has successfully brought inflation down significantly over the past two years without triggering a recession, many American families still consider their economic woes the top consideration when selecting a presidential candidate.
Increased Consumer Spending And GDP Growth Signal The Potential For A “Soft Landing”
Increased consumer spending and GDP growth are good signs that the Fed continues to be able to complete its promised “soft landing” and avert a recession.
The Stock Market Responded Positively To The GDP Announcement
Following the Commerce Department’s announcement that the GDP outperformed expectations, the stock market responded with a resounding performance Thursday, reaching new highs.
Commentary From Experts Highlights The Strength Of The U.S. Economy
Bill Adams from Comerica Bank said, “The GDP revisions show the U.S. economy was in good shape in mid-2024. Solid growth of consumer spending propelled the economy forward in the second quarter, and the increase in consumer confidence in July suggests it will propel growth in the second half of the year as well.”
Inflation Continues To Cool, Nearing The Federal Reserve’s Target
The GDP report also shows inflation continues to cool, approaching the Federal Reserve’s target of 2 percent.
The Fed Is On Track To Meet Its Inflation Target
While the Fed’s two percent target rate of inflation continues to elude it, it is on track to be met, and Chair Jerome Powell has announced that cuts will resume as early as mid-September.
Economic Unease Remains Among Americans Ahead Of The Presidential Election
Many Americans still feel economically uneasy leading into the Presidential election because the unemployment rate has risen for four consecutive months, and over one-quarter of all American workers reported looking for a new job in a survey released last week.
The Upcoming Election Will Hinge On Economic Messaging
The party that wins November’s election will arguably be the party that best conveys a plan to relieve the pinch on Americans’ finances and avoid being blamed for adverse economic conditions.
Juliet Potrykus
Juliet Potrykus is a distinguished writer with expertise in political news, public policy, and legislation, boasting a decade of Capitol Hill experience in Washington, D.C. She holds a Master's Degree in International Relations and American Politics from George Washington University. Now based in Washington state with her family, Juliet continues her advocacy on critical issues like immigration, education, and constitutional matters.