Q2 GDP Up 2.4%

New York City, NY, July 28. 2023-Gross domestic product grew at a seasonally- and inflation-adjusted 2.4% annual rate in the second quarter, much faster than economists expected and above the 2% growth in the first three months of the year, The Wall Street Journal (WSJ) reports.

As inflation falls from historic highs and the labor market remains strong, the solid growth is adding to the prospect of a soft landing in which inflation returns close to the Federal Reserve’s 2% target without a recession, according to WSJ.

“Consumer spending cooled but rose enough to drive overall growth alongside much stronger business investment in the second quarter,” the article states. “Those factors combined to buck economists’ earlier expectations that a downturn would start in the middle of this year due to higher interest rates.”

The economy's 2+% growth rate over the past year is roughly in line with the rate recorded in the decade before the pandemic took hold, WSJ reports, adding, “Many economists still expect economic growth to ease later this year and into 2024, but they are dialing back recession fears.”