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U.S. economy accelerates in Q2, wage growth decelerated

Staff Writer |
The U.S. economy accelerated in the second quarter as consumers ramped up spending and businesses invested more on equipment.

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Gross domestic product increased at a 2.6 percent annual rate in the April-June period, which included a boost from trade, the Commerce Department said in its advance estimate on Friday.

That was more than double the first quarter's downwardly revised 1.2 percent growth pace.

Wage growth, however, decelerated despite an unemployment rate that averaged 4.4 percent in the second quarter.

Inflation also retreated, appearing to weaken the case for the Federal Reserve to raise interest rates again this year.

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