The U.S. economy grew at an annualized rate of 3% in the second quarter, beating Wall Street expectations.
The Bureau of Economic Analysis’ third estimate of U.S. gross domestic product (GDP) for the second quarter was unchanged from the second estimate, which showed growth at an annualized rate of 3%. Economists had expected the figure to show growth at an annualized rate of 2.9%. The third estimate of second-quarter GDP confirms that economic growth exceeded the 1.4% annualized growth rate in the first quarter.
“This revision strengthens our confidence that the U.S. economy will continue to expand at a steady pace over the next 12 months and suggests that labor market conditions are unlikely to deteriorate materially going forward,” Michael Pearce, deputy chief economist at Oxford Economics, wrote in a client note on Thursday.
Meanwhile, data released by the U.S. Department of Labor on Thursday showed that jobless claims for the week ended Sept. 21 fell to 218,000, below Wall Street expectations of 223,000. That was the lowest level since mid-May.
The data comes a week after the Federal Reserve cut interest rates by half a percentage point in an effort to prop up an economy that Chairman Powell described as in “good shape.”
“[The economy is] “We’re growing at a solid pace. Inflation is coming down,” Powell said after the rate cut decision on Sept. 18. “The labor market is strong. We want to keep it that way. That’s what we’re doing.” [by cutting interest rates]”
Read more: How the Federal Reserve’s rate cut will affect your bank accounts, CDs, loans and credit cards
Thursday’s GDP release is expected to be retrospective, as it is an update on economic growth for the quarter that ended in June, but forecasts show the economy growing at a steady pace in the third quarter ending in September.
The Atlanta Fed’s GDP Now Tracker currently projects the U.S. economy will grow at an annualized rate of 2.9%, while Goldman Sachs’ economics team currently projects the U.S. economy will grow at an annualized rate of 3% in the third quarter.
A full view of the American flag raised on the field during the national anthem during the Alamo Bowl between the Arizona Wildcats and Oklahoma Sooners at the Alamodome. (Kirby Lee – USA TODAY Sports) (USA TODAY Sports via Reuters Connect / Reuters)
Josh Shaffer is a reporter for Yahoo Finance. Follow him on X Translator.
For in-depth analysis of the latest stock market news and events that are moving stock prices, click here.
Read the latest financial and business news from Yahoo Finance