The U.S. economy showed a significant uptick in the second quarter, with the gross domestic product expanding at a seasonally adjusted annual rate of 2.8%, according to the Commerce Department. This growth was driven by increased consumer and business spending, which helped offset declines in housing construction and a widening trade gap.
Consumer spending, which accounts for about 70% of economic activity, rose by 2.3% annualized in the second quarter, reflecting strong job and wage gains that have supported consumer confidence. However, concerns are emerging as high borrowing costs are starting to impact both households and businesses.
