The U.S. economy grew at a robust annual rate of 4.2 percent in the second quarter, the best performance in nearly four years, but economists believe growth has slowed in the current quarter, in part because of a drag from trade.
The Federal Reserve will surprise no one if it does Wednesday what it seems poised to do for a third time this year: Raise its key short-term interest rate by a modest quarter-point to help keep inflation in check — and hint that another hike is likely in December.
Consumer spending, bolstered by strong job growth and tax cuts, rose a solid 0.4 percent in July, the sixth straight month of healthy gains, while a key measure of inflation posted its largest annual gain in more than six years.
U.S. productivity grew at an annual rate of 2.9 percent in the second quarter, the fastest pace in more than three years, while labor costs actually fell.
Consumer spending rose by a solid 0.4 percent in June, while a key gauge of inflation increased at an annual pace of 2.2 percent for a second straight month, the strongest back-to-back gains in six years.
The U.S. economy surged in the April-June quarter, growing at an annual rate of 4.1 percent.
U.S. wholesale prices increased 0.3 percent in June, a slight slowing from May.
The U.S. trade deficit dropped in May to the lowest level in 19 months as U.S. exports rose to a record level.
U.S. service firms expanded at a surprisingly strong pace in June as companies saw gains in business activity and new orders.
U.S consumers increased their spending just 0.2 percent in May, a disappointing result after two months of much stronger gains.
U.S. economic growth in the first quarter was revised down to a lackluster 2 percent — a sharp deceleration and the poorest showing in a year.
Americans increased their borrowing in April at the slowest pace in seven months, dragged by a big slowdown in the category that covers auto and student loans.
U.S. productivity grew at an annual rate of just 0.4 percent in the first quarter, even weaker than initially estimated, while labor costs rose at a bit faster pace.
U.S. construction spending surged 1.8 percent to a record high in April as home building rose by the largest amount in 24 years.
Americans boosted their spending by 0.6 percent in April, the biggest increase in five months, while a gauge of inflation remained at the Federal Reserve's optimal level for a second straight month.
The U.S. economy grew at a weaker 2.2 percent annual rate in the first three months of the year, as consumers and businesses slowed their spending.
U.S. wholesale prices edged up just 0.1 percent in April, held down by a big drop in food costs.
Americans increased their borrowing by $11.6 billion in March as a big increase in the category that covers auto and student loans offset the largest monthly drop in credit card borrowing in more than five years.
U.S. construction spending dropped 1.7 percent in March, the biggest setback in 11 months, with weakness in a number of sectors including the biggest plunge in home building in nine years.
The Treasury Department says that the government borrowed a record $488 billion in the January-March quarter, but it expects borrowing needs will decline sharply for the current April-June quarter.