The US economy grew stronger than expected in the second quarter, but consumers are pulling back | CNN Business

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The US economy picked up steam in the second quarter despite punishing rate hikes and still-high inflation

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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