• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

How Smart Mattresses Improve Sleep Quality For Couples

May 9, 2025

OpenAI CEO Warns: ‘Not A Huge Amount Of Time’ Until China Overpowers American AI

May 9, 2025

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Friday, May 9
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    OpenAI CEO Warns: ‘Not A Huge Amount Of Time’ Until China Overpowers American AI

    May 9, 2025

    Trump Announces First Post-Tariff Trade Deal

    May 8, 2025

    Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

    May 7, 2025

    Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

    May 7, 2025

    Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

    May 7, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Business»Moderate US economic growth expected in second quarter
Business

Moderate US economic growth expected in second quarter

July 27, 2023No Comments5 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email

[1/2]People line up outside a newly reopened career center for in-person appointments in Louisville, U.S., April 15, 2021. REUTERS/Amira Karaoud/File Photo

  • Second-quarter GDP forecast increasing at a 1.8% rate
  • Moderate consumer spending seen after first-quarter surge
  • Business investment likely picked up on equipment rebound
  • Weekly jobless claims expected to rise to 235,000

WASHINGTON, July 27 (Reuters) – The U.S. economy likely maintained a moderate pace of growth in the second quarter as labor market resilience underpinned consumer spending, while businesses boosted investment in equipment and built more factories, potentially keeping a much-feared recession at bay.

The Commerce Department’s snapshot of second-quarter gross domestic product on Thursday is also expected to show the housing market slump nearing an end. Outside the housing market and manufacturing, the economy has largely weathered the 525 basis points in interest rate hikes from the Federal Reserve since March 2022 as the U.S. central bank battled inflation.

Economists have since late 2022 been forecasting a downturn, but with price pressures retreating, some now believe that the soft-landing scenario for the economy envisaged by the Fed is feasible. The central bank on Wednesday raised its policy by 25 basis points to a 5.25%-5.50% range.

“This will be another indication that the economy is not tipping into recession. Much of the effect of the rate hikes already has occurred,” said Dean Maki, the chief economist at Point72 Asset Management in Stamford, Connecticut. “As long as the Fed is content that inflation is moderating at a fast enough pace, they’re not going to implement the kind of additional rate hikes that would be needed to bring about a recession.”

See also  Growth in Southeast Asia’s Digital Economy Slows Slightly in 2024

According to a Reuters survey of economists, GDP growth likely increased at a 1.8% annualized rate last quarter after rising at a 2.0% pace in the first quarter.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, likely remained a pillar of support, although the pace of growth slowed from the second quarter’s robust 4.2% rate. Spending on long-lasting manufactured goods has slowed after booming during the COVID-19 pandemic. Services spending is, however, taking up some of the slack.

Spending is being propped up by excess savings accumulated during the pandemic, estimated by economists to be as much as $2.1 trillion at one point, debt and strong wage gains from the tight labor market as companies hoard workers after struggling to find labor during the pandemic. That is underscored by persistently low levels of layoffs.

The weekly jobless claims report from the Labor Department on Thursday is likely to show first-time applications for state unemployment benefits rising 7,000 to a seasonally adjusted 235,000 for the week ended July 22, according to a Reuters poll.

The number of people receiving benefits after an initial week of aid, a proxy for hiring, is seen falling to 1.750 million during the week ending July 15 from 1.754 million in the prior week. This covered the week that the government surveyed households for July’s unemployment rate. At 3.6% in June, the jobless rate was not too far from multi-decade lows.

“There are some pockets of job losses being announced here and there, but it does appear that people are getting jobs rather quickly if they are losing their jobs,” said Mike Skordeles, head of U.S. economics at Truist Advisory Services in Atlanta.

See also  Boeing Faces Cybersecurity Crisis As Lockbit Gang Demands Ransom And Threatens To Release Company’s Sensitive Data

FACTORY CONSTRUCTION BOOMING

Business investment likely accelerated after almost stalling in the first quarter, thanks to an anticipated rebound in spending on equipment like aircraft and motor vehicles.

Efforts by President Joe Biden’s administration to bring semiconductor manufacturing back to the United States are boosting factory construction. Investment in nonresidential structures like factories probably remained robust last quarter, contributing to the economy’s resilience.

Further contribution to GDP growth was expected from government spending. Trade was likely a drag after adding to growth for four straight quarters.

Inventory investment is a wild card, though most economists are penciling in a contribution to GDP growth of at least five tenths of a percentage point. Business sharply reduced inventory accumulation in the January-March quarter in anticipation of weaker domestic demand, slicing 2.14 percentage points off GDP growth that period.

Though residential investment, which includes homebuilding, likely contracted for the ninth straight quarter, the decline was probably the shallowest in 1-1/2 years.

In the past, when the economy was heading into recession, homebuilding and auto production plunged. But these cyclical parts of the economy, including new home sales and auto sales are picking up, raising cautious optimism that the economy could skirt a recession, even as some analysts expected GDP to turn negative at some point.

“We’ll see some slowing in the second half of the year, and possibly negative GDP in the first quarter,” said Sean Snaith, director of the University of Central Florida’s Institute for Economic Forecasting. “But will it rise to the level of a recession? That’s less clear.”

See also  Tesla signs lease to open vast sales and service centre in Shanghai industrial park

But some economists remain convinced that a recession is on the horizon, arguing that higher borrowing costs will eventually make it harder for consumers to fund their spending with debt.

They also noted that banks were tightening credit and excess savings continued to be run down. Slowing job growth was seen curbing wage gains.

“What we’ve been used to in the last couple of downturns is that everything kind of turns down at the same time,” said Richard de Chazal, macro analyst at William Blair in London.

“What’s different this time is that we’re just seeing a slowdown that’s being driven by the Fed. Over time rates are going to increasingly bite and the chances of a recession are higher than not having one.”

Reporting by Lucia Mutikani; Editing by Andrea Ricci

: .

Economic expected growth moderate Quarter
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

OpenAI CEO Warns: ‘Not A Huge Amount Of Time’ Until China Overpowers American AI

May 9, 2025

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

May 7, 2025

Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

May 7, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

U.S. mortgage rates fall for a second week but hold above 7%

September 8, 2023

Many People Will Say They’re Worse Off than They Were Four Years Ago Due to Inflation

October 21, 2023

‘Parents Loved It’: DeSantis Hammers Republicans Who Criticized His Battle With Disney

June 4, 2023

Undefined R&R Hydro Jelly Hydrates, Balances Oil Production

May 13, 2023
Don't Miss

How Smart Mattresses Improve Sleep Quality For Couples

Lifestyle May 9, 2025

Sharing a bed with your partner can be romantic… until it’s not. One of you…

OpenAI CEO Warns: ‘Not A Huge Amount Of Time’ Until China Overpowers American AI

May 9, 2025

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025

Trump Announces First Post-Tariff Trade Deal

May 8, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,111)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,628)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

Justin Trudeau Mocked over Support of ‘2SLGBTQI+’ Canadians, Condemning ‘Biphobia’

September 23, 2023

Asian shares dip with eyes on the Chinese economy and a possible US shutdown

September 26, 2023

Analysts Say These 2 Stocks Are Their ‘Top Picks’ for the Rest of 2023

July 11, 2023
Popular Posts

How Smart Mattresses Improve Sleep Quality For Couples

May 9, 2025

OpenAI CEO Warns: ‘Not A Huge Amount Of Time’ Until China Overpowers American AI

May 9, 2025

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.