The U.S. economy grew at a slightly slower pace in the second quarter, according to revised figures released. Initial estimates of gross domestic product (GDP) were marked down from 2.4% to 2.1%. While this growth rate is still considered faster than optimal for U.S. growth, it indicates underlying strength in the economy.
Looking ahead, experts predict another robust reading in the third quarter, with GDP forecasted to be 2.5% or higher. This positive outlook defies expectations of a potential recession due to increased interest rates aimed at curbing inflation. While there may be signs of a slowdown in the current quarter, the overall health of the economy remains relatively strong.
The Big Picture
While GDP is the official measure of economic performance, it primarily provides a retrospective view. Recent indicators, such as business surveys by S&P Global and job openings, suggest a possible loss of momentum towards the end of summer. However, economists are less inclined to believe that a recession is imminent compared to earlier this year.
In Wednesday's trading, the Dow Jones Industrial Average and S&P 500 were anticipated to open slightly higher.