The US economy is expected to expand 2% in the second quarter

The US economy will grow at an annual rate of 2% in the second quarter of 2024, and there is a high possibility that it will rise from 1.4% in the 2024 January-March fiscal year.

Despite this increase, it is the lowest continuous quarterly growth since 2022, falling below the average quarterly growth rate of 3.1% from 2021 to 2023, indicating that the economy is cooling down amid rising interest rates.

According to the Atlanta Federal Reserve's GDPNow estimate, consumer spending recovered in the second quarter, increased 2.2% above 1.5% in the first quarter, and inventories seem to have accounted for almost 1% of growth.

However, there is a high possibility that housing investment has shrunk from double-digit growth in the first quarter, and net trade is expected to have a negative impact on growth due to declining exports.

Source: US Bureau of Economic Analysis