Madridited States’ gross domesticroduct (GDP) grew 0.5% in the second quarter of the year, a similar growth rate to the first three months of 2023 and a tenth less than the preliminary estimate reported by the Bureau of Economic Analysis of the Department of Commerce.
On an annualized basis, the Office’s preferred way of presenting data, US GDP accelerated to 2.1% growth in the second quarter from 2% in the first quarter. However, this second reading of the data implies a downward correction of three tenths from the preliminary estimate.
The Commerce Department has pointed out that the downward revision in real GDP growth in the second quarter reflects downward revisions in private investment in inventories and non-residential fixed investment, partially offset by upward revisions in consumer spending. State and local governments, while imports have been revised upward.
Last week in Jackson Hole, Federal Reserve Chairman Jerome Powell warned that the Federal Reserve is watching for signs the economy is not slowing down as expected, as GDP growth so far this year has beaten expectations, and inflation is “still too high”, so the US Federal Reserve is ready to raise interest rates if necessary.
The Fed’s Federal Open Market Committee (FOMC), the body that sets US monetary policy, is scheduled to meet again on September 19–20.
At its July meeting, the Federal Reserve unanimously approved a 25 basis point rate hike to within a target range of 5.25% to 5.50%, the highest level since January 2001.