Economy grew at 2.1% annual pace

WASHINGTON — The U.S. economy grew at a 2.1% annual pace from April through June, extending its sturdy performance in the face of higher interest rates, the government said Thursday, leaving its previous estimate unchanged.

The second-quarter expansion of the nation's gross domestic product — its total output of goods and services — marked a modest deceleration from the economy's 2.2% annual growth from January through March.

Consumer spending, business investment and state and local government outlays drove the second-quarter economic expansion.

The economy and job market showed surprising resilience as the Federal Reserve dramatically raised interest rates to combat inflation, which last year hit a four-decade high. The Fed raised its benchmark rate 11 times since March 2022, sparking concerns of a recession.