The US economy grew at a solid 2.2 per cent pace from April through June as consumer spending and business investment came in strong.
Growth in gross domestic product – the nation’s output of goods and services – decelerated from a 2.5 per cent pace from January through March, the Commerce Department reported Wednesday. The second-quarter growth was an improvement on the department’s previous estimate of 1.5 per cent – a surprise to economists who had expected little or no change in the GDP number.
Consumer spending – which accounts for about 70 per cent of US economic activity – increased at a healthy 3.8 per cent annual pace, up from 0.7 per cent in the January-March period. Spending has been helped by a strong stock market, which reflects enthusiasm over the prospects for artificial intelligence, enriches wealthy investors and gives them more money to buy things with.
The overall…