US Economy Exceeds Expectations with Strong Second Quarter GDP Growth

The US economy is expected to maintain a moderate pace of growth in the second quarter, with GDP forecasted to increase at a 1.8% annualized rate. Consumer spending, supported by excess savings, debt, and strong wage gains, is likely to remain a pillar of support, although at a slower pace. Business investment is expected to pick up, particularly in equipment spending. Weekly jobless claims are projected to rise slightly, but the labor market remains resilient. The housing market slump is nearing an end, and the economy has largely weathered interest rate hikes. While some economists believe a recession is on the horizon, others see a soft landing scenario as feasible.