Economy expected to extend two-year growth streak in second quarter

[mahatmakanejeeves]

ECONOMY
Economy expected to extend two-year growth streak in second quarter
A slowdown in housing construction is expected to drag down GDP, though economists still expect 1.9 percent annualized growth.

By Abha Bhattarai
July 25, 2024 at 6:00 a.m. EDT

The U.S. economy likely extended its growth streak in the most recent quarter, capping two years of solid expansion, although there are signs that consumer spending is softening as the unemployment rate climbs.

Fresh data from the Commerce Department this morning is expected to show that gross domestic product grew at a 1.9 percent annualized rate, according to economists’ forecasts, stronger than the 1.4 percent reading in the previous quarter, but a general cooldown from last year’s brisk pace.

“The economy has been growing gangbusters over the last several years but now it’s settling back into a more normal pattern,” said Ryan Sweet, chief U.S. economist at Oxford Economics. “We are in a period of transition.”

Consumer spending, which makes up roughly two-thirds of the economy, is expected to drive much of the second quarter’s growth. Continued government spending and business investments are also likely to prop up the GDP reading, which sums up goods and services produced in the United States. ... However, a slowdown in home construction and other residential investments is expected to drag down economic growth — a turnaround after three straight quarters of solid growth.

{snip}

By Abha Bhattarai
Abha Bhattarai is the economics correspondent for The Washington Post. She previously covered retail for the publication. Twitter https://twitter.com/abhabhattarai