Gross domestic product, the broadest measure of economic output, grew by an annualized, seasonally adjusted 2.4% rate in the April-through-June period. That was a faster pace than in the first three months of the year and was also above economists’ expectations for a 1.8% rate, according to Refinitiv. GDP is also adjusted for inflation.
It remains to be seen whether the Fed can successfully defeat inflation without seeing a deterioration in the labor market — but so far, both spending and hiring have abated slightly and gradually. Business spending is dragging on growth Business spending — known as nonresidential fixed investment — rebounded strongly in the second quarter as businesses invested more on equipment and structures.
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