The United States economy grew at a rate of 2.8% in the second quarter of 2024, according to data released by the US Bureau of Economic Analysis. This growth was driven by increased consumer spending on goods and services, particularly in healthcare, housing and utilities, and recreation services. In the goods sector, the growth was fueled by purchases of motor vehicles and parts, recreational goods and vehicles, furnishings and durable household equipment, and gasoline and other energy goods. The current dollar GDP increased by 5.2% annually, or $360 billion in the second quarter, reaching $28.63 trillion. This follows a 4.5% or $312.2 billion increase in the first quarter of 2024. The price index for domestic purchases rose 2.3% in the second quarter compared to a 3.1% increase in the first quarter. Personal consumption expenditure (PCE) rose 2.6% compared to a 3.4% increase in the last quarter. The PCE price index increased 2.9% compared to a 3.7% increase in the last quarter. The Department of Commerce attributed the economic acceleration to an upturn in private inventory investment and an acceleration in consumer spending, partially offset by a downturn in residential fixed investment. Matthew Martin, an economist at Oxford Economics, told AFP that consumption is expected to remain a key driver of the economy, maintaining a relatively strong growth path of around two percent. Martin also believes the US Federal Reserve should begin cutting interest rates in September, followed by further cuts at subsequent meetings.
