US Q2 GDP Tracks 2.5% Growth as Economy Accelerates From 1.6%
Updated
Updated · Investing.com · Jun 10
US Q2 GDP Tracks 2.5% Growth as Economy Accelerates From 1.6%
2 articles · Updated · Investing.com · Jun 10
Summary
A median of major nowcasts compiled by CapitalSpectator.com held second-quarter US GDP growth at a 2.5% annualized rate, unchanged from last week and pointing to faster output in April through June.
That pace marks an acceleration from 1.6% growth in Q1 and 0.5% in Q4, suggesting the economy has regained momentum despite the Middle East war that began on Feb. 28.
Inflation remains the main weak spot: the conflict has lifted price pressure more than it has hurt activity, though economists say there are still few signs the shock is spreading broadly through the economy.
May payrolls rose strongly for a third straight month, reinforcing the resilience story, while Fed funds futures still imply the Federal Reserve will leave rates unchanged at meetings later this month and in July.
The second-half outlook depends largely on whether inflation starts to curb consumer demand and whether tensions in the Middle East ease enough to reduce uncertainty.