US reports firm Q2 economic growth, inflation steady

The U.S. Commerce Department reported stronger second-quarter GDP growth of 2.2% than initially estimated, with inflation remaining stable and private employment increasing more than anticipated. The boost came primarily from consumer spending, investment, and exports, while imports added to GDP calculations. The upward revision in GDP growth is largely attributed to sectors benefitting from the artificial intelligence technology boom.

Inflation, measured by the U.S. Federal Reserve's preferred gauge, remained steady at 3.4% year-on-year in August, unchanged from the previous month after adjusting July data. Despite years of high prices since the pandemic, the Fed has missed its long-term two-percent inflation target since early 2021. The labor market has also shown resilience, with private sector hiring rebounding strongly in September, surpassing market expectations.

These positive economic indicators provide a potential boost for U.S. President Donald Trump as his Republican Party prepares for key midterm elections in November.