UPDATE - US economy expands 2.4% in 2nd quarter, more than estimates

Market expectation was for figure to come in at 1.8%

ADDS BIDEN'S REMARKS

By Ovunc Kutlu

ISTANBUL (AA) - The US economy expanded 2.4% in the second quarter, more than market estimates, according to the Commerce Department's first reading released Thursday.

The expectation for the figure was to come in at 1.8%. The economy grew 2% in the first quarter of 2023.

"The increase in real GDP reflected increases in consumer spending, nonresidential fixed investment, state and local government spending, private inventory investment, and federal government spending," Commerce Department said in a statement.

Those, however, were partly offset by decreases in exports and residential fixed investment, it added.

Current‑dollar GDP increased 4.7% at an annual rate, or $305.2 billion, in the second quarter to reach $26.84 trillion, according to the statement.

President Joe Biden said the American economy is growing while inflation is falling significantly.

"The economy’s continued growth builds on what was already the strongest pandemic recovery and lowest inflation of any G-7 country," he said in a statement.

Biden stressed that unemployment remains near record lows, inflation has fallen by two-thirds, while real wages are higher than they were before the coronavirus pandemic.

"Private business investment was strong and investment in manufacturing facilities contributed more to growth than it has in 40 years," he said, noting that there has been more than half a trillion dollars in private sector investment commitments in clean energy and manufacturing.


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