The U.S. economy (GDP) grew at a 3.3% annualized rate from April to June, according to the Commerce Department’s report on Thursday. This figure surpassed the initial 3.0% estimate and the 3.1% Dow Jones consensus forecast, driven by stronger-than-expected consumer spending.
The U.S. economy grew at an even faster than thought pace in the second quarter as consumers and businesses held up against tariff volatility.
Consumer spending helped push the number higher, rising by 1.6% compared to an initial 1.4% estimate.
Importantly, a measure called final sales to private domestic purchasers jumped 1.9%, up from the previous figure of 1.2%. Federal Reserve officials watch that metric closely as an indication of demand and sales that focuses on activity within U.S. borders, an especially important measure considering the uncertain impact of President Donald Trump’s tariffs.
Inflation-related estimates were little changed from the initial reading. Core personal consumption expenditures prices, which exclude the volatile food and energy categories, rose 2.5%, unchanged from the prior figure, while the headline PCE price index edged lower to 2%, in line with the Fed’s inflation goal.
MacDailyNews Take: Well, we’ll see how the Fed digests that. Obviously, healthy U.S. consumer spending is positive for Apple.
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