U.S. GDP grew 

3% last quarter

The U.S. economy grew last quarter at a healthy 3% annual pace, fueled by strong consumer spending and business investment, the government said in an upgrade of its initial assessment. The Commerce Department had previously estimated that the nation’s gross domestic product expanded at a 2.8% rate from April through June. The second-quarter growth marked a sharp acceleration from a sluggish 1.4% growth rate in the first three months of 2024. Consumer spending, which accounts for about 70% of U.S. economic activity, rose at a 2.9% annual rate last quarter, up from 2.3% in the government’s initial estimate. Thursday’s report reflected an economy that remains resilient while still gradually slowing under the pressure of continued high interest rates.

Fewer Americans

file jobless claims

The number of Americans filing for unemployment benefits fell slightly last week as the U.S. labor market remains healthy in the face of high interest rates. Jobless claims ticked down by 2,000 to 231,000 for the week of Aug. 24, the Labor Department reported Thursday. That’s just below the 232,000 new filings analysts were expecting. The four-week average of claims, which evens out some of the week-to-week volatility, fell by 4,750 to 231,500. Weekly filings for unemployment benefits, which are considered a proxy for layoffs, remain low by historic standards. The total number of Americans collecting jobless benefits rose by 13,000 to 1.87 million for the week of Aug. 17.

Mortgage rates

ease to 6.35%

The average rate on a 30-year mortgage eased for the second week in a row and remains at its lowest level in more than a year. That’s good news for prospective homebuyers facing home prices near all-time highs. Mortgage buyer Freddie Mac said Thursday that the rate fell to 6.35% from 6.46% last week. A year ago, the rate averaged 7.18%. Mortgage rates are expected to keep trending lower overall this year. That’s due to signs of waning inflation and a cooling job market, which have raised expectations that the Federal Reserve will cut its benchmark interest rate next month for the first time in four years.

Nippon Steel raises

U.S. commitment

Nippon Steel Corp. is raising its capital commitment by more than $1 billion to spend on U.S. Steel’s plants amid entrenched political and labor opposition to the Japanese company’s acquisition of the American steelmaker. Nippon Steel’s $1.3 billion commitment Thursday to upgrade facilities in Pennsylvania and Indiana is on top of an earlier commitment to spend $1.4 billion. The announcement was dismissed by the United Steelworkers as “lip service.” The sale also has drawn opposition from Republican presidential nominee Donald Trump and President Joe Biden.

—Bulletin wire reports