The US economy expanded at a 2.8% annualized pace in the second quarter, according to the Commerce Department, outperforming market expectations. The latest reading points to continued resilience despite lingering concerns about inflation, interest rates and the broader outlook for growth.

Consumer spending remained steady and business investment also contributed to the stronger-than-expected result. Together, those trends helped offset some of the pressure from higher borrowing costs and a still-uncertain global environment.

Economists will now look to upcoming data for signs of whether the momentum can continue into the second half of the year. While the report signals a healthy baseline for the economy, analysts caution that growth could still slow if household demand weakens or financial conditions tighten further.