The U.S. economy grew at a faster pace than initially reported in the second quarter of 2024, according to the latest data from the Bureau of Economic Analysis.

The economy expanded at a 3.0% annual rate in Q2, up from the initial estimate of 2.8%. This represents a significant acceleration from the 1.4% growth in Q1. The upward revision was primarily due to stronger consumer spending on both goods and services. Increases in private inventory investment and business investment also contributed to the economic expansion.

The Personal Consumption Expenditures (PCE) price index, a key inflation measure, rose 2.5% in Q2, down from 3.4% in Q1. Core PCE, excluding food and energy, increased 2.8%, showing a moderation in inflation pressures. 

Real disposable personal income grew by 1.0% in Q2, while the personal saving rate was 3.3%, down from 3.8% in Q1.

Profits increased 1.7% in Q2, rebounding from a 1.4% decrease in Q1. Year-over-year, corporate profits were up 8.0%.

The report suggests that the U.S. economy maintained strong momentum in the second quarter, with consumer spending driving growth while inflation pressures eased. However, the decline in the personal saving rate may indicate that consumers are dipping into savings to maintain spending levels.

In a separate report, initial jobless claims fell by 2,000 to a seasonally adjusted 231,000 for the week ended Aug. 24.