Economic Indicators: US Economy Grew at 2.8% Rate in Q2 2024

Economic Indicators: US Economy Grew at 2.8% Rate in Q2 2024

Real gross domestic product (GDP) increased at an annual rate of 2.8 percent in the second quarter of 2024, according to the "advance" estimate. In the first quarter, real GDP increased 1.4 percent. The increase in the second quarter primarily reflected increases in consumer spending, inventory investment, and business investment. Imports, which are a subtraction in the calculation of GDP, increased. Read the full BEA report.

The GDP is measured as the total market value of the goods and services produced within a specific geography during a given time period. Gross domestic product is a key indicator of the general health of the economy and its performance, with increases indicative of economic growth.

Chamber Perspective

The decision of the Federal Reserve to hold interest rates steady underscores the Fed's desire to continue on a path towards a soft landing in the wake of historic inflation and a heated labor market. This comes on the heels of a stronger-than-expected GDP of 2.8% annual rate in the second quarter faster than the first quarter of the year.

Overall, the economy is growing at a solid pace with the ongoing gradual return to normalizing labor market conditions. In the Detroit Region, the latest inflation levels of 3.4% over the last 12 months show progress has been made, and labor market conditions are normalizing with unemployment remaining low at 4.1%, matching the national rate.