The U.S. economy maintained solid growth in the second quarter, expanding at an annual rate of 3.0%, according to the latest government figures released on Thursday. This marks the third and final revision of second-quarter data, confirming earlier estimates.
Economic indicators suggest that the third quarter, which is nearing its close, is likely to see similar growth, with projections pointing to a rate just below 3.0%. This comes after the economy rebounded from a slower 1.6% growth in the first quarter of the year.
The revised report showed a slight dip in consumer spending, the primary driver of the economy, which grew at 2.8% rather than the previously reported 2.9%.
However, government spending saw an upward revision, increasing at a 3.1% annual rate, up from an earlier estimate of 2.7%. Business investment, trade, and inventories remained relatively stable with minimal revisions.
A separate metric that combines gross domestic product (GDP) and gross domestic income (GDI) posted a 3.2% growth in the second quarter, offering a more comprehensive view of U.S. economic performance.
While the GDP figures appear strong, the economy still faces challenges. Hiring has slowed, and unemployment has risen steadily over the past year, while high interest rates have stifled activity in both the housing and automotive markets.
The Federal Reserve has responded by lowering interest rates, a move expected to stimulate growth across sectors in the coming months.
On a year-over-year basis, U.S. GDP has grown between 2.8% and 3.2% for five consecutive quarters, a milestone not seen since 2006.
