U.S. Economy Surges in Q2, Fueled by Consumer and Business Investment

The United States' economic performance exceeded expectations in the second quarter as robust consumer spending and heightened business investment propelled growth. The annualized rate jumped to 3.8%, the swiftest pace in nearly two years, according to the Commerce Department's latest figures.

However, analysts caution that the economic momentum might face headwinds from ongoing trade policy uncertainties and tepid hiring trends, possibly stifling growth in the year's second half. Measures by the Federal Reserve remain a focal point as it assesses future interest rate decisions amid mixed signals.

Despite the optimism sparked by GDP revisions and reduced unemployment claims, economists anticipate a modest annual growth of 1.5%. This outlook reflects apprehensions about trade tensions and their ripple effects on the broader economy.

(With inputs from agencies.)