**GDP Surges at 2.8% in Second Quarter, Boosting Economic Outlook**

**Key Highlights:**

• Real gross domestic product (GDP) increased at a 2.8% annualized pace in the April-through-June period.
• This marks a significant rebound from the 0.9% decline in the second quarter of 2022.
• Consumer spending and housing investment drove the increase in economic activity.

**Details of the Report:**

According to the advance estimate from the U.S. Bureau of Economic Analysis, real GDP grew at a seasonally adjusted annual rate of 2.8% in the second quarter of 2024 (Table 1).

This increase follows a 3.4% growth rate in the fourth quarter of 2023. Personal consumption expenditures, which account for about 70% of U.S. GDP, increased at an annual rate of 2.7%. Residential fixed investment rose at a rate of 8.7%, reflecting strong demand for housing.

The GDPNow model, developed by the Federal Reserve Bank of Atlanta, is currently forecasting that real GDP growth will be 2.7% in the second quarter of 2024.

**Implications for the Economy:**

The strong GDP growth in the second quarter is a positive sign for the U.S. economy. It suggests that consumer spending and investment are both rebounding after a slow start to the year.

However, inflation remains a concern, and the Federal Reserve is continuing to raise interest rates to bring it under control. It is possible that higher interest rates could slow down economic growth in the coming quarters.