US economy posts 2.8 percent growth in April-June quarter

Washington: The US economy, despite high interest rates, grew at 2.8 percent in the second quarter — double the rate of 1.4 percent that it saw in the January-March period. The significant growth is mainly attributed to increased consumer spending and inventory building, AFP reported on Thursday quoting government data.

After a slow start this year, the world’s biggest economy grew at an annual rate of 2.8 percent in the April to June period, up from 1.4 percent in the first three months, said the Commerce Department.

The initial estimate was markedly above the 1.9 percent growth rate economists anticipated — a reassuring sign that consumption remains resilient.

President Joe Biden hailed the economy’s strength in a statement, adding he had “more to do” in his last six months in the White House.

Biden, who endorsed Vice President Kamala Harris after his historic decision to drop out of the 2024 election, added: “The Vice President and I will keep fighting for America’s future.”