The U.S. economy showed surprising resilience Wednesday as growth was revised sharply higher, consumers continued spending and inflation came in slightly cooler than economists expected despite months of elevated energy costs due to the Iran war.
Gross domestic product grew at a 2.2% annual rate from April through June, up from the government’s previous 1.5% estimate, while consumer spending increased at a 3.8% annualized pace. Consumer spending accounts for roughly 70% of U.S. economic activity, making its continued strength particularly important as the Iran war has helped drive fuel costs higher and placed additional pressure on household and business budgets.
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