The U.S. economy grew at a stronger-than-expected pace in the second quarter, according to preliminary Commerce Department data. The result suggests households and businesses kept spending despite higher borrowing costs and ongoing uncertainty in the broader economy.

Consumer demand remained a key driver of the expansion, while business investment also added support. Economists will now look closely at the details of the report to see whether growth is broadening or still concentrated in a few sectors.

The latest GDP reading offers a firmer picture of economic momentum after a period of uneven performance. It may also influence expectations around interest rates, inflation, and the Federal Reserve's next policy steps.

While the headline figure points to resilience, analysts say the durability of that growth will depend on whether wages, spending, and investment continue to hold up in the months ahead.