{"id":584541,"date":"2023-07-27T17:16:39","date_gmt":"2023-07-27T14:16:39","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/us-economy-blows-past-expectations-three-quick-takeaways\/"},"modified":"2023-07-27T17:16:39","modified_gmt":"2023-07-27T14:16:39","slug":"us-economy-blows-past-expectations-three-quick-takeaways","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/us-economy-blows-past-expectations-three-quick-takeaways\/","title":{"rendered":"#US economy blows past expectations: Three quick takeaways\u00a0"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2400ac7c07a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2400ac7c07a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/us-economy-blows-past-expectations-three-quick-takeaways\/#Core_inflation_falls_again\" >Core inflation falls again\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/us-economy-blows-past-expectations-three-quick-takeaways\/#Workers_are_getting_more_productive\" >Workers are getting more productive\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/us-economy-blows-past-expectations-three-quick-takeaways\/#Investment_is_picking_up\" >Investment is picking up\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<p><img decoding=\"async\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/6e447daabb084169bfe3e0ae307037ce.jpg?w=900\" \/><\/p>\n<div>\n<p>Gross domestic production (GDP) came in hot in the second quarter, growing at a 2.4 percent rate that marked the fourth straight quarter of positive growth and underlining the resilience of the U.S. economy. \u00a0<\/p>\n<p>Economists polled by Bloomberg had been expecting GDP growth of around 1.8 percent, meaning the 2.4 percent growth was a pleasant surprise \u2014 especially with other recent data indicating slowing inflation.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>The numbers from the Commerce Department are the latest sign of strength in the U.S. economy and come a day after the Federal Reserve reversed its March prediction of a \u201cmild recession\u201d to hit later this year.\u00a0<\/p>\n<p>Here are three takeaways on the numbers.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Core_inflation_falls_again\"><\/span><strong>Core inflation falls again<\/strong>\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Inflation has been tumbling as the Fed has been raising interest rates, and Thursday\u2019s figures show this trend continuing.\u00a0<\/p>\n<p>The personal consumption expenditures (PCE) price index advanced 2.6 percent in the second quarter, down from 4.1 percent in the first.\u00a0<\/p>\n<p>\u201cCore\u201d PCE inflation \u2013 a statistic the Fed pays special attention to \u2013 also slowed down considerably, falling to 3.8 percent from 4.9 percent in the first quarter. The core removes the more volatile categories of food and energy prices, which are subject to factors like the weather and geopolitical pressures.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Workers_are_getting_more_productive\"><\/span><strong>Workers are getting more productive\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Even as the Fed has raised interest rates to try to take the wind out of a growing labor market to tame inflation, the latest numbers imply that workers are actually getting more productive.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>\u201c2.4 percent growth in value added for non-farm business, coupled with near flat index for aggregate hours and drop in self-employment implies strong productivity growth in [the second quarter],\u201d economist Dean Baker with the Center for Economic and Policy research wrote online.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Investment_is_picking_up\"><\/span><strong>Investment is picking up<\/strong>\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Strong GDP is being bolstered by a boom in factory construction and investment stemming from huge pieces of subsidy- and tax-credit heavy legislation passed during the first half of the Biden administration, including the Inflation Reduction Act, the CHIPS Act, and the Infrastructure Investment and Jobs Act.\u00a0<\/p>\n<p>\u201cGDP growth was strong in [the second quarter] at a 2.4 percent annual rate. The pattern represents a partial handover with consumption growth moderating (1.6%) while fixed investment picked up (4.6%),\u201d Harvard University economist Jason Furman wrote online on Thursday.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<p>\u201cInvestment boom sustains strong growth in [the second quarter],\u201d Baker wrote.\u00a0<\/p>\n<\/div>\n<p>Copyright 2023 Nexstar <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Media<\/a> Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/homenews\/4122704-us-economy-blows-past-expectations-three-quick-takeaways\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gross domestic production (GDP) came in hot in the second quarter, growing at a 2.4 percent rate that marked the fourth straight quarter of positive growth and underlining the resilience of the U.S. economy. \u00a0 Economists polled by Bloomberg had been expecting GDP growth of around 1.8 percent, meaning the 2.4 percent growth was a&#8230;<\/p>\n","protected":false},"author":1,"featured_media":584542,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/6e447daabb084169bfe3e0ae307037ce.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[134344,34072,141271,4941,5069,134661,134447,70550,70522,70551,70552,124783,136632,71525,115,141939,79097,4965],"class_list":["post-584541","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-administration","tag-biden-campaign","tag-dean-baker","tag-donald-trump","tag-economy","tag-energy-environment","tag-energy-and-environment","tag-federal-reserve","tag-gdp","tag-inflation","tag-interest-rates","tag-international","tag-jason-furman","tag-national-security","tag-news","tag-politics-of-the-united-states","tag-president-joe-biden","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/584541","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=584541"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/584541\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/584542"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=584541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=584541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=584541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}