Gross domestic product rose at a 2.8 percent annual rate in the second quarter, new evidence of the economy’s resilience despite high interest rates.According to a report from The New York Times, the latest data from the Commerce Department shows that the U.S. economy continues to show resilience despite high interest rates. The report states that the gross domestic product (GDP) rose at a 2.8 percent annual rate in the second quarter, exceeding expectations and indicating a strong economy.

The report highlights that consumer spending, a key driver of economic growth, increased at a solid pace of 2.3 percent in the second quarter. This is slightly slower than the previous year, but still a positive sign considering the challenges faced by businesses due to the pandemic. Additionally, business investment in equipment also saw a significant increase, the fastest in over two years.

The report also notes that inflation, which had been a concern earlier this year, has eased in the second quarter. This is a positive development as it indicates that the economy is on track for a “soft landing,” where inflation decreases without causing a recession. This was not expected when the Federal Reserve began raising interest rates two years ago to combat inflation.

Economists quoted in the report, including Sam Coffin from Morgan Stanley and Ryan Sweet from Oxford Economics, believe that the economy is in a good place and is transitioning to a more sustainable growth rate. The data is preliminary and will be revised at least twice, but it suggests that the economy is on firm footing.

The report concludes by stating that while there were concerns about a potential recession earlier this year, recent data, including the strong second-quarter growth figures, indicate that the expansion is still going strong. This is a positive sign for the economy and suggests that it is in a good place for the foreseeable future. 

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