GDP growth unexpectedly ticks up to 2.4% annual rate in second quarter
by Zachary Halaschak, Economics Reporter |
July 27, 2023 08:31 AM
Economic growth unexpectedly increased to a 2.4% annual rate in the second quarter of this year, up from 2% the quarter before, the Bureau of Economic Analysis reported Thursday morning.
Economists had expected a 1.7% rate.
Thursday's report is the first of three estimates of GDP growth, adjusted for inflation, in the second quarter.
The second quarter was marked by the Federal Reserve's efforts to bring inflation down. After more than a year of successive interest rate hikes, some by very aggressive margins, this week, the Fed opted to raise rates again, bringing its target range to 5.25% to 5.50%, the highest level in more than two decades. Rate increases have the effect of slowing economic output.
Declining GDP is the biggest indicator of an economic downturn or recession. Typically, two back-to-back quarters of negative GDP growth are indicative of a recession. So, the fact that the GDP was positive in the first quarter and second quarter is welcome news to economists, many of whom were predicting just months ago the country might be in a recession by now.
more
https://www.washingtonexaminer.com/policy/economy/gdp-growth-unexpectedly-ticks-up-second-quarter
