The nation’s economy accelerated last quarter at a strong 2.8% annual pace, with consumers and businesses helping drive growth despite the pressure of continually high interest rates, according to reporting from the Associated Press.

A report from the Commerce Department released Thursday said the gross domestic product was up in the April-June quarter after growing at a 1.4% pace in the January-March period. “Economists had expected a weaker 1.9% annual pace of growth,” AP reported.

Inflation was 2.6% in the quarter, a decline from 3.4% in the first quarter of the year.

AP credits increased business spending, particularly investments in equipment, and strong consumer spending, which grew at a 2.3% annual rate in the quarter.

The Wall Street Journal provided analysis, stating that the report “suggests that the economy remains on solid footing, even two years after soaring inflation. … But the report also looks at previous months rather than what’s coming up. Companies have been warning that customers are feeling squeezed, and that they expect that to continue.”

Meanwhile, Numerator’s Consumer Sentiment Tracker showed that consumers are feeling more optimistic. Some highlights:

• The June Consumer Confidence Score was 57.1 (+0.3 vs. May), which is an average of how consumers feel about the job market, their household finances, and their spending comfort levels.
• 49% of consumers say their household’s financial situation is currently good or very good (a one-point increase since May).
• 41% of consumers are very or somewhat comfortable spending money on discretionary purchases right now.

A national poll conducted by NACS earlier this year and published in the April 2024 issue of NACS Magazine found that 64% of Americans felt that the country was headed down the wrong track—but that is a 6-point improvement over last year.