The U.S. economy expanded at a 2.8% annualized pace in the second quarter, outpacing forecasts and pointing to continued resilience in the face of higher borrowing costs and slower global growth. Preliminary government data released Monday showed the pace of growth held up better than many economists expected.

Consumer spending remained a key driver of the expansion, while business investment also contributed to the stronger reading. The report suggests households and companies continued to support economic activity even as the Federal Reserve’s higher-rate environment weighed on parts of the economy.

The latest GDP figure adds to a mixed but still solid picture for the U.S. economy, with growth staying positive even as inflation, interest rates and trade uncertainty continue to shape the outlook. Economists will now watch whether the momentum carries into the second half of the year.

Second quarter

U.S. Economy Grows 2.8% in Q2, Topping Forecasts