Q2 2024 Economic Reports

30 Jul

30Jul

U.S. GDP grew at a 2.8% annual rate in Q2, up from 1.4% in Q1.
Growth driven by increased consumer spending, business investment, and inventory growth.
Consumer spending rose by about 2%, especially in health care, housing, recreation, and durable goods.
Business investment increased, particularly in equipment and intellectual property.
Inventory growth was notable in wholesale and retail trade, offset by declines in mining, utilities, and construction.
Gross domestic purchases prices increased by 2.3%, down from 3.1% in Q1.
Excluding food and energy, prices increased by 2.5%, down from 3.3% in Q1.
Personal consumption expenditures price index increased by 2.6%, compared to 3.4% in Q1.
Current-dollar personal income increased by $237.6 billion, down from $396.8 billion in Q1.
Real disposable personal income growth slowed, and the personal saving rate decreased to 3.5%.

206,000 jobs added in June, with a slight rise in the unemployment rate to 4.1%.
Labor force participation rate increased to 62.6%, driven by prime-age workers.
Wage growth slowed, with average hourly earnings rising 0.3% from May and 3.9% year-over-year.
Job growth mainly in government and healthcare sectors.
Private sector payrolls slowed, with gains in construction offset by declines in manufacturing.
Job openings rose to 8.14 million in May, but a cooling trend is expected.

Federal Reserve left the overnight federal funds rate unchanged.
Potential for at least one interest rate cut in 2024 remains.
Disinflation resumed, with CPI inflation falling to 3.3% in May.
FOMC held rates steady, awaiting further evidence of returning inflation to the 2% target.
Financial markets expect a 0.25% rate reduction in September.
Labor market showed better balance between supply and demand, with nominal wage increases trending down.

IMF forecasted global growth at 3.2% for 2024 and 3.3% for 2025.
U.S. growth revised to 2.6% for 2024, slowing to 1.9% in 2025.
Euro area expected to see modest growth driven by services and net exports.
Japan's growth outlook revised downward due to supply disruptions and weak investment.
Stronger activity in emerging markets, especially China (5% growth forecast for 2024) and India (7%).
Latin America faced downward revisions for Brazil and Mexico due to natural disasters and moderating demand.
Middle East and Central Asia impacted by oil production cuts and regional conflicts, with notable downward revisions for Saudi Arabia and Sudan.

Comments