US economy shows solid growth of 3% in the last quarter

The U.S. economy expanded at a healthy 3% annual pace from April to June, boosted by strong consumer spending and business investment, the government said Thursday, leaving its previous estimate unchanged.

The Commerce Department reported that growth in the nation’s gross domestic product, which is the total output of goods and services, increased markedly in the second quarter, compared with the tepid 1.6% annual rate in the first three months of the year. anus.

Consumer spending, which is the main driver of the economy, increased last quarter at a pace of 2.8%, slightly below the 2.9% rate the government had previously estimated. Business investment was also strong, rising at a brisk 8.3% annual pace last quarter, driven by a 9.8% increase in investment in machinery and equipment.

The US economy, which is the largest in the world, showed remarkable resilience in the face of the 11 interest rate increases that the Federal Reserve carried out in 2022 and 2023 to combat the worst streak of inflation in four decades. Since peaking at 9.1% in mid-2022, annual inflation, as measured by the consumer price index, has slowed to 2.5%, slightly above the Fed’s target.

Despite rising credit rates, the economy continued to grow and employers continued to hire. Still, the labor market has shown signs of weakness in recent months.

From June to August, U.S. employers added an average of just 116,000 jobs a month, the lowest quarterly average since mid-2020, when the COVID-19 pandemic crippled the economy. The unemployment rate rose slightly from 3.4% last year, a half-century low, to 4.2%, still relatively low.

Connect with the Voice of America! Subscribe to our channels YouTube, WhatsApp and to the newsletter. Turn on notifications and follow us on Facebook, x and instagram.