The Globe and Mail reports in its Friday edition that the U.S. economy grew faster than expected in the second quarter due to solid gains in consumer spending and business investment. A Reuters dispatch to The Globe reports that inflation pressures, however, subsided, maintaining expectations of a September interest-rate cut from the Federal Reserve. The growth in the last quarter was also supported by inventory building and increased government spending, as per the Commerce Department's advance report on second quarter gross domestic product released on Thursday. However, the housing-market recovery regressed and was a small drag on the economy, while the trade deficit widened further, subtracting from GDP growth. The report allayed concerns that the economic expansion was at risk of an abrupt end, which had been fuelled by lacklustre performance in the first quarter and in April. Despite the Fed's hefty rate hikes in 2022 and 2023, the economy continues to outperform its global peers, thanks to a resilient labour market. "Economic growth is solid, not too hot and not too cold," said FWDBONDS's Christopher Rupkey. Despite the solid economic growth pace, the outlook for the second half of the year is hazy.