The U.S. economy expanded at a stronger-than-expected pace in the second quarter, supported by solid consumer spending and a pickup in business investment. The latest GDP reading suggests demand remained firm despite concerns about higher borrowing costs and a slowing global backdrop.

Consumer activity continued to do much of the heavy lifting, helping offset weakness in other parts of the economy. Business investment also improved, adding to signs that companies are still committing capital even as policymakers keep a close watch on inflation and interest-rate pressures.

The stronger growth figure points to an economy that remains more resilient than many economists had anticipated. Still, analysts will be watching whether that momentum can last if households face tighter credit conditions or if companies become more cautious later in the year.

For markets and policymakers, the report offers a mixed signal: growth is holding up, but the path ahead still depends on inflation trends, consumer confidence, and whether investment can continue to support expansion in the months ahead.