USAFIS us economy

Consumer and Business Spending Boost US Economy

The U.S. economy experienced an annual growth rate of 3% in the second quarter of 2024, driven by increased consumer spending and business investment. This growth surpasses the Department of Commerce’s initial estimate of 2.8%, demonstrating that the economy continues to show resilience despite high interest rates.

USAFIS supports immigrants seeking stable employment in the United States, offering crucial information on the steps and requirements for settling and thriving in this land of great opportunities.

Consumer spending, which accounts for approximately 70% of economic activity, grew at a pace of 2.9%, higher than the previously estimated 2.3%. This recovery marks a significant shift from the 1.4% growth recorded in the first quarter, showing that Americans’ purchasing power and confidence have partially rebounded after facing high inflation levels in 2022.

In addition to consumer spending, business investment played an important role, growing by 7.5%. This increase was driven by a 10.8% rise in equipment investment, reflecting an optimistic business environment despite the pressure from high borrowing costs.

The report also highlights a steady reduction in inflation, which fell to an annual rate of 2.5% in the second quarter, compared to 3.4% in the first quarter. Despite this progress, inflation remains slightly above the 2% target set by the Federal Reserve.

An increase in consumer spending has triggered growth in the US economy

This sustained growth reinforces confidence in the U.S. economy, especially with the upcoming presidential elections in November, where the state of the economy will play a crucial role in voters’ decisions. As shown by recent studies, consumer confidence has risen, suggesting that consumption will continue to be a key driver for growth in the second half of the year.

Although the Federal Reserve’s policies have increased borrowing costs, the economy has demonstrated its resilience, and many experts expect that, with the progressive reduction of inflation, interest rates will begin to decrease in the coming months, further facilitating growth.

Numerous job opportunities exist for immigrants in the United States. USAFIS provides the necessary guidance to understand the requirements and successfully establish oneself in a country full of possibilities.

Leave a Comment