Key Economic Updates for July 2024

Washington, D.C., July 26, 2024 — The U.S. economy continues to navigate through a dynamic period characterized by significant developments across various sectors. Today, the Department of Commerce, along with other key financial institutions, released important updates on economic indicators, providing insights into the current state and future outlook of the nation’s economy.

GDP Growth and Economic Performance

The U.S. Gross Domestic Product (GDP) grew at an annualized rate of 2.4% in the second quarter of 2024, surpassing analysts’ expectations of a 2.0% growth rate. This marks a solid recovery from the previous quarter’s 1.8% growth, driven by robust consumer spending, increased business investments, and a rebound in the manufacturing sector.

“These figures indicate a resilient economy that is rebounding well despite global uncertainties,” said Commerce Secretary Gina Raimondo. “Our policies are aimed at sustaining this growth and addressing any emerging challenges.”

Labor Market and Employment

The latest employment report from the Bureau of Labor Statistics (BLS) shows that the U.S. economy added 210,000 jobs in June, maintaining the unemployment rate at a historically low 3.5%. Significant job gains were seen in the healthcare, construction, and professional services sectors. However, the tech industry experienced modest job cuts due to ongoing restructuring efforts.

Federal Reserve Chair Jerome Powell commented on the labor market’s strength, stating, “The labor market remains robust, with steady job creation that supports household incomes and consumer spending. We are closely monitoring wage growth and inflationary pressures.”

Inflation and Consumer Prices

The Consumer Price Index (CPI) for June indicated a year-over-year inflation rate of 3.6%, down from 4.0% in May. This decrease reflects easing supply chain constraints and lower energy prices. Core inflation, which excludes food and energy, remained steady at 3.4%.

“While we see some moderation in inflation, it’s crucial to remain vigilant,” Powell added. “The Federal Reserve will continue to use its tools to ensure price stability and support maximum employment.”

Housing Market Trends

The housing market showed signs of cooling as rising interest rates impacted mortgage affordability. According to the National Association of Realtors (NAR), existing home sales fell by 5.2% in June compared to the previous month. The median home price, however, increased by 1.8% year-over-year, reflecting ongoing supply shortages.

Lawrence Yun, NAR’s Chief Economist, noted, “Higher borrowing costs are starting to temper demand, but tight inventory levels continue to push prices upward. It’s a complex market for both buyers and sellers.”

Stock Market and Financial Markets

U.S. financial markets have experienced increased volatility amid concerns over global economic slowdown and geopolitical tensions. The S&P 500 and NASDAQ indexes posted mixed results in recent weeks, with tech stocks facing particular pressure. Conversely, energy and utility sectors have performed well, driven by stable demand and favorable commodity prices.

“Investors are navigating a challenging landscape with caution,” said Janet Yellen, U.S. Treasury Secretary. “We are focused on ensuring financial stability and supporting economic growth through prudent fiscal policies.”

Federal Reserve Policy and Interest Rates

The Federal Reserve has signaled a potential pause in its rate hike cycle, citing the need to assess the cumulative impact of previous increases. The current federal funds rate stands at 5.25%, following several rate hikes aimed at curbing inflation.

“The Fed is committed to data-driven decision-making,” Powell emphasized. “We will adjust our policy stance as necessary to achieve our dual mandate of price stability and maximum employment.”

Looking Ahead

As the U.S. economy navigates through 2024, key areas of focus will include monitoring inflation trends, sustaining job growth, and addressing housing affordability. The federal government and financial institutions remain committed to fostering a stable and prosperous economic environment.

For more detailed information on these economic updates, visit the official websites of the U.S. Department of Commerce, the Bureau of Labor Statistics, and the Federal Reserve.

Contact Information:

• U.S. Department of Commerce
• Email: press@commerce.gov
• Phone: +1 (202) 482-2000

This press release provides a comprehensive overview of the latest economic updates, highlighting key indicators and expert insights to keep the public informed about the state of the U.S. economy.