The government’s two main measures of US economic activity accelerated in the second quarter, reinforcing a picture of a resilient economy that’s showing signs of picking up steam.
Gross domestic product rose at a downwardly revised 2.1% annualised pace in the second quarter, below the government’s previous estimate. A gauge of the income generated and costs incurred from producing goods and services — gross domestic income — rose 0.5% after contracting in the prior two quarters, Bureau of Economic Analysis figures showed Wednesday.
The average of the two measures rose 1.3%, the most in nearly a year. The group that officially determines the timing of business cycles watches the average closely.
The downward revision to GDP reflected less inventory and nonresidential fixed investment.
Household spending, the engine of the US economy was revised higher, to a 1.7% pace.
Bolstered by the enduring strength of the labour market and resilient consumers, the US economy continues to power ahead. While that strength has led many economists to push out their recession forecasts — or scrap them altogether — a sustained acceleration in activity could force the Federal Reserve to step on the brakes harder to ensure inflation continues to fall.
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