US government data show that the country’s economy grew at an annualized rate of 2.8 percent in real terms in the April-June period. It marks the eighth consecutive quarter of expansion.
The advance estimate of gross domestic product released by the Department of Commerce on Thursday beat the market forecast of a roughly 2-percent rise. It also exceeded the 1.4-percent gain in the January-March period.
Personal consumption expenditures, which account for some 70 percent of GDP, increased 2.3 percent, up 0.8 percentage points from the previous quarter.
Spending on business structures, equipment and intellectual property products also rose 0.8 points to 5.2 percent.
Investment in residential construction and equipment declined 1.4 percent, down markedly from a 16-percent jump in the previous quarter.
The latest statistics indicate that personal spending helped the US economy expand robustly, except for housing investment which was dented by high interest rates.
However, the Beige Book economic report published by the Federal Reserve last week said retailers were discounting items, or price-sensitive consumers were purchasing only essentials in almost every district across the country.
Fed Chair Jerome Powell is scheduled to speak at a news conference after a policy-setting meeting that will begin on Tuesday.
Market players will be watching what he has to say about the prospects for rate cuts.