Current economic news for July 2024.

1. Gross Domestic Product (GDP) Growth

The U.S. GDP growth rate has shown a significant uptick in the second quarter of 2024. The advance estimate indicates a 2.8% increase, up from 1.4% in the first quarter. This growth is primarily driven by consumer spending, inventory investment, and business investment. However, imports have also increased, which is a subtraction in the GDP calculation​(BEA)​​ (BEA)​.

2. Inflation Trends

The Consumer Price Index (CPI) for June 2024 indicates an annual inflation rate of 3.0%. The inflation rate for various categories includes:

• Food: 2.2%
• Energy: 1.0%
• All items less food and energy: 3.3% Significant changes within these categories show a decrease in used car prices by 10.1% and an increase in motor vehicle insurance by 19.5%​ (Bureau of Labor Statistics)​.

3. Housing Market

June 2024 saw an increase in housing starts and building permits, both rising by approximately 3% from the previous month. However, this growth is mainly attributed to multifamily housing, with single-family home construction remaining subdued due to high interest rates. The Market Composite Index, which tracks mortgage applications, increased by 3.9% as homeowners took advantage of lower mortgage rates​ (Investopedia)​.

4. Interest Rate Outlook

Federal Reserve officials have hinted at potential interest rate cuts in the near future, although the exact timing remains uncertain. Recent speeches indicate that if the current trend of disinflation and resilient employment continues, easing monetary policy might be appropriate later this year​ (Investopedia)​.

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