The US economy grew faster than initially estimated during the second quarter, showing resilience despite higher energy prices and economic uncertainty, according to CNN.
Gross domestic product expanded at a 2.2% annualized rate after adjusting for inflation, up from the Commerce Department’s earlier estimate of 1.5%. Economists had expected the previous estimate to remain unchanged.
Business investment also strengthened, with spending on artificial intelligence contributing to the expansion. Moody’s Ratings Chief Credit Officer Atsi Sheth said consumers and companies continued spending and investing despite inflation and uncertainty surrounding interest rates.
However, the pace remained below the 2.5% annualized growth recorded in the first quarter. Higher borrowing costs could also weigh on future activity after the Federal Reserve raised interest rates. More expensive credit could eventually slow both business investment and household spending, according to the report.
Related Tweet:
BREAKING: The U.S. economy grew at a solid 2.2% pace from April through June as consumer spending and business investment came in strong. https://t.co/dljEJr9Lhk
— The Associated Press (@AP) September 30, 2026
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