Despite Strong Consumption, US GDP Growth Undershoots Expectations

MT Newswires Live

07/30

Despite resurgent consumer spending and robust business investment, US Q2 growth came in below expectations. The Bureau of Economic Analysis’ advance estimate on Thursday showed real GDP up 1.5% YoY in Q2 (est. +2.1%, prior +2.1%).

A large quarter-to-quarter decline in net exports masked still-strong domestic demand. Consumer spending, about two-thirds of US activity, rose 3.2% at an annualized quarterly rate. Business investment remained strong, supported by an AI-driven investment boom.

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