US economy grows faster than expected

The U.S. economy grew by a more-than-expected 2.8 percent in the second quarter of this year. The U.S. economy grew by a more-than-expected 2.8 percent in the second quarter of this year. Growth was expected to be 2 percent. Personal spending, the economy’s main growth engine, rose by a more-than-expected 2.3 percent. The key measure of closely watched inflation rose by 2.9 percent from the first quarter but still above estimates, the Bureau of Economic Analysis reported on Thursday. While the pace of growth has picked up since the first quarter, the figures still represent a modest year-over-year pace. Consumer spending and broader economic activity have cooled under the weight of higher interest rates, which has also helped gradually rein in inflation. That bodes well for the Federal Reserve, which is trying to engineer a soft landing for the economy and is likely to begin cutting rates starting in September. Treasury yields rose slightly and stock futures were lower after the report.