WASHINGTON \u2014 The U.S. economy grew at a solid 2.2 per cent pace from April through June as consumer spending and business investment came in strong.<\/p>\n
Growth in gross domestic product \u2014 the nation\u2019s output of a goods and services \u2014 decelerated from a 2.5 per cent pace from January through March, the U.S. Commerce Department reported Wednesday. The second-quarter growth number was an improvement on the department\u2019s previous estimate of 1.5 per cent.<\/p>\n
Consumer spending \u2014 which accounts for about 70 per cent of U.S. economic activity \u2014 increased at a healthy 3.8 per cent annual pace, up from 0.7 per cent in the January-March period.<\/p>\n
The overall growth number was dragged down by imports. They are subtracted from growth because GDP is only supposed to count domestic production. Imports rose at a 12.6 per cent annual pace from April through June, partly due to a surge in shipments of computer chips and other products that support artificial intelligence investment, and slashed nearly 1.7 percentage points off second-quarter growth.<\/p>\n
The U.S. economy has proven surprisingly resilient in the face of fighting with Iran and the energy price spike it caused.<\/p>\n
Business investment, excluding housing, rose at a nine per cent clip in the second quarter, reflecting the AI investment boom. And a measure of the economy\u2019s underlying strength \u2014 which strips out volatile government spending and trade numbers \u2014 grew at a strong 4.6 per cent rate, up from 1.8 per cent in the first quarter.<\/p>\n
Investment in housing rose 2.8 per cent ticking up for the first time since the end of 2024. The housing market has been depressed by high mortgage rates.<\/p>\n
Wednesday\u2019s report was the last of three Commerce Department estimates of second-quarter GDP growth. The first look at third-quarter growth is due Oct. 29.<\/p>\n
Paul Wiseman, The Associated Press<\/p>\n
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