US ECONOMY REMAINS RESILIENT IN SECOND QUARTER

The U.S. economy maintained a fairly solid pace of growth in the second quarter and activity appears to have gathered speed this quarter, but a looming government shutdown and an ongoing strike by auto workers are dimming the outlook for the rest of 2023. Tight labor market conditions continue to prevail, with the number of Americans filing new claims for unemployment benefits rising slightly last week, other data showed on Thursday.

Some economists believe that the economy's resilience and tight labor market could give the Federal Reserve ammunition to raise interest rates again in November. Others, however, expect the darkening cloud over the economy would discourage the U.S. central bank from tightening monetary policy further.

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