The United States’ economic growth accelerated in the second quarter, owing mostly to strong consumer spending, the Commerce Department reported on Thursday. The GDP expanded at an annualised rate of 3.0%, which was unchanged from the prior estimate. According to economists, this was consistent with forecasts. In contrast, growth in the first quarter was revised to 1.6%, up from the previously reported 1.4% rate.
The government corrected the national account statistics from the first quarter of 2019 to the first quarter of 2024. This indicated that economic growth and business earnings in 2023 were better than the previous estimate. GDI was one where an adjustment was made as part of these changes. GDI, a measure of income-related activity, rose at a 3.4% rate in the second quarter, an important revision from 1.3% previously reported. GDI for the first quarter was also revised higher to 3.0%.
Economists have signalled an alarm over the divergence between GDP and GDI, which they say is a sign of inflation in measuring the economy’s health. Yet its adjustments lower that gap. The Gross Domestic Output average of GDP increased by 3.2% in the second quarter, more than 2.1%.
