The U.S. GDP grew by 3% in the second quarter, fueled by a surge in import revenue, increased government spending on infrastructure and green energy, and robust business investment in technology and renewables.

Although the Federal Reserve has held interest rates steady at 4.25% to 4.5%, inflationary pressures remain evident. Construction material prices particularly for concrete, electrical equipment, and HVAC systems continue to rise year-over-year. Additionally, labor costs have climbed significantly, with skilled trade wages increasing by 5–7% in high-demand regions. These persistent cost escalations, combined with slowing consumer demand in some sectors, have raised concerns about the potential for stagflation. Despite these challenges, strong growth in technology and infrastructure-related sectors is expected to sustain the economy, though the rate of expansion may moderate to around 2.0% to 2.2% by year-end.