The growth of the US economy in the second quarter of this year has turned out to be less robust than initially reported. A fresh evaluation conducted by the US government reveals that the expansion of the world’s largest economy reached 2.1 percent, in contrast to the earlier announcement of a 2.4 percent growth.
During the initial quarter, the economy of the United States advanced by 2 percent. This computation follows an annualized approach, wherein the growth observed in a single quarter is artificially prolonged to a value analogous to the annual growth rate.
The US economy places significant reliance on consumer expenditures, which continue to exhibit strength despite the interest rate hikes implemented by the American central bank in response to addressing elevated inflation. This resilience is partly attributed to the tightness observed in the labor market. It is plausible that the Federal Reserve might opt to temporarily halt its sequence of interest rate hikes during its deliberations in September.
