world-economy

US GDP Growth Expands 1.5% in Q2 as Inflation, Freight Metrics Show Mixed Signals

The US economy expanded 1.5% in the second quarter. Revisions showed stronger consumer spending and business investment than initially estimated. A closely watched inflation gauge rose as expected in July. Consumer spending stalled, giving the Federal Reserve flexibility to maintain current interest rate policy. Truckload spot rates posted their largest sequential gain in five years during Q2. Whether this surge will sustain into Q3 remains unclear. European exporters showed renewed optimism, with German sentiment reaching four-and-a-half-year highs. This optimism reflects strengthening intra-EU trade. The divergence between improved manufacturing sentiment abroad and weakening US consumer activity suggests logistics demand may face near-term pressure.