US GDP showed steady growth

The U.S. economy has steady growth during the Q2 2023, matching experts' expectations. For what’s important, the gross domestic product (GDP) saw a growth of 2.1% in this period, while the first quarter was revised to reflect a 2.2% growth rate, up from the initial 2.0% report. 

Historical GDP data was also updated due to new information and improved methods. Interestingly, GDP for the early months of 2020, 2021, and 2022 was lowered as consumers spending was less than estimated. 

New price metrics have also been introduced - super core inflation, which focuses on costs excluding specific variables like food and energy. The Federal Reserve would be looking at these measurements when assessing inflation. 

The labor market remains strong, promoting higher wages and potentially leading to a 4.9% growth rate in the third quarter. However, political disagreements and the potential for a government shutdown could be a threat to the U.S. economy. If Congress doesn't secure funding by October 1, many federal services could be halted. On a side note, the unemployment rate saw a minor uptick, from 3.5% in July to 3.8% in August.

On top of that, there was a surge in current-dollar personal income by $239.6 billion, which is $7.4 billion more than earlier estimates. The main contributors to this rise were compensation, particularly private sector wages, earnings from assets like dividends and interest, government-provided social benefits, and rental income.