The US economy grew at a 3% annualized pace in the second quarter.
The Bureau of Economic Analysis’s third estimate of second quarter US gross domestic product (GDP) was unchanged from the second estimate which had shown 3% annualized growth. Economists had estimated the reading to show annualized growth of 2.9%. The third estimate for second quarter GDP confirms that economic growth was higher than the 1.4% annualized growth seen in the first quarter.
The data’s release comes a week after the Federal Reserve cut interest by half a percentage point in an effort to preserve what Fed Chair Powell described as an economy in “good shape.”
“[The economy is] growing at a solid pace. Inflation is coming down,” Powell said on Sep. 18 after the rate cut decision. “The labor market is in a strong place. We want to keep it there. That’s what we’re doing [by cutting interest rates].”
Thursday’s reading on GDP is considered backward looking given it’s an update to economic growth for a quarter that ended in June. But projections show the economy has been growing at a steady pace in the third quarter, which ends in September, too.
The Atlanta Fed GDPNow tracker currently projects the US economy is pacing for annualized growth of 2.9%. Meanwhile the economics team at Goldman Sachs is currently projecting the US economy grew at an annualized pace of 3% in the third quarter.
Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
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