Key Points
Real GDP growth rebounded from a small Q1 contraction related to tariff front-running, growing at a 3.0% seasonally adjusted annualized rate
- Final sales to private domestic purchasers (FSPDP) – which is equal to personal consumption plus private fixed investment – remained relatively robust in Q1.
- In Q2, FSPDP growth moderated, indicating some softening in private demand.
Real Growth Trends
The headline unemployment rate rose to 4.2% in July.
- U-1, an alternative measure that covers workers that are unemployed for 15 or more weeks, rose to the highest level since November 2021.
- The U-1 rate rose significantly over the second half of 2024 and remains elevated relative to the 1.3% average rate seen over 2019.
U-1 (15+ Week Unemployment Rate)
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