The US economy grew faster than expected last quarter, with GDP rising at a 2.8% annualized rate compared to 1.4% in the previous quarter. This growth was driven by strong consumer demand and business investment, including an outsized increase in nonfarm inventories.

Personal spending increased by 2.3%, led by health care and durable goods, such as cars and furnishings.

The Core Personal Consumption Expenditures (PCE) price index rose 2.9%, indicating persistent inflationary pressures despite easing from Q1. Business investment grew at the fastest pace in almost a year, particularly in equipment.