According to Bloomberg's report on July 30th, the U.S. Bureau of Economic Analysis released preliminary estimates on that day. It was reported that due to increased imports, the real GDP of the United States in the second quarter of this year increased by 1.5% year-on-year, which was lower than market expectations. This indicates that the growth rate has slowed compared to the beginning of the year.
The decline in net exports masks a strong performance in basic demand. Net export data usually exhibit significant quarterly fluctuations. Consumption expenditures, which account for about two-thirds of economic activity, grew by 3.2% on an annual basis. Business investment continued to grow rapidly, driven by companies competing to invest in artificial intelligence.
Meanwhile, driven by falling gasoline prices, the Federal Reserve's key inflation indicator—the Personal Consumption Expenditures (PCE) price index—fell by 0.1% in June. The core PCE price index, excluding food and energy items, increased by 0.1%.
According to an article by The Associated Press on the same day, the inflation indicators favored by the Federal Reserve showed a slowdown last month, but they were still above the Fed’s target of 2%. At this time, with less than 100 days left until the mid-term elections, Americans are dissatisfied with the high cost of living.
