US economy grew at a faster 2.4% rate in April-June quarter despite Fed rate hikes

By PAUL WISEMAN
AP Economics Writer

WASHINGTON (AP) — The U.S. economy accelerated unexpectedly to a 2.4% annual growth rate from April through June, showing continued resilience in the face of steadily higher interest rates resulting from the Federal Reserve’s 16-month-long fight against inflation. The gross domestic product — the economy’s total output of goods and services — picked up from the 2% growth rate in the January-March quarter. Consumer spending slowed to a 1.6% annual rate, from 4.2% in the first quarter of the year, a likely consequence of higher borrowing costs. But business investment and state and local government spending grew faster.