U.S. economy grows less than expected in Q 2 as spending and investment hold up
Despite a rebound in consumer spending and solid business investment, U.S. economic growth in the second quarter still came in below expectations. So far, the U.S. economy has withstood the impact of the Middle East conflict. Although the conflict pushed up prices and hurt confidence, lower gasoline costs late in the quarter, larger-than-usual tax refunds, and promotional campaigns supported household spending. A surge in investment in artificial intelligence has also played a key role. After the Federal Reserve decided to keep interest rates unchanged, Fed Chair Wosh described the economy’s resilience as “impressive,” but said the most notable feature was the strong momentum in business investment.