U.S. Economy Surges as Consumer Spending and Corporate Profits Rebound

The U.S. economy saw stronger growth in Q2 than initially reported, driven by robust consumer spending and corporate profit rebounds. GDP increased by 3.0%, an upward revision from 2.8%. Consumer spending was revised up to 2.9%, and corporate profits surged by $57.6 billion, supporting economic expansion.

The U.S. economy expanded at a faster rate than previously estimated in the second quarter, bolstered by strong consumer spending and a rebound in corporate profits. The Commerce Department's Bureau of Economic Analysis announced that gross domestic product (GDP) grew by an annualized rate of 3.0% last quarter, up from the 2.8% reported last month.

Economists had forecast the GDP figure to remain at 2.8%. Consumer spending, which constitutes over two-thirds of the economy, was also revised upwards to a 2.9% rate from the earlier 2.3%. This increase in spending offset declines in business investment, exports, and private inventory investment.

Meanwhile, personal income saw a revision downwards by $4.0 billion, totaling a $233.6 billion increase in Q2. Corporate profits, which fell by $47.1 billion in Q1, surged by $57.6 billion in Q2, driven by gains in financial and non-financial sectors despite a decline in international profits. On the income side, the economy grew at a 1.3% rate, pointing to robust overall economic health.

(With inputs from agencies.)