US economic growth beats expectations

According to final data, annualized GDP growth was revised up from 1.5% to 2.2%. The upward revision reflected stronger investment, consumer spending and government expenditures. The figures showed that the US economy remained more resilient than expected in the second quarter despite the high interest rate environment.

On the inflation front, the second-quarter PCE price index was revised down from 5.3% to 5%, while core PCE was lowered from 3.6% to 3.3%. The combination of stronger growth and downward revisions to inflation indicators closely monitored by the Fed drew attention from markets as investors assessed the outlook for monetary policy.