The U.S. economy defied expectations of a recession in the second quarter as it experienced faster-than-expected growth, according to a report by the Commerce Department. Gross domestic product increased at an annualized rate of 2.4% during the April-through-June period, surpassing the consensus estimate of 2% from Dow Jones. Consumer spending played a crucial role in driving this solid quarter, along with nonresidential fixed investment, government spending, and inventory growth. Additionally, inflation remained relatively controlled, with the personal consumption expenditures price index increasing by 2.6%. The economy's resilience was seen despite Federal Reserve interest rate increases expected to cause a contraction. The positive growth trend has been ongoing since the second quarter of 2022, and economists do not anticipate a recession declaration from the National Bureau of Economic Research. Although there are signs of trouble, such as an inverted yield curve, the overall outlook remains positive with strong employment gains and a resilient consumer.