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Thursday, July 27, 2023

The Daily Money: Economy accelerated in latest quarter as recession worries ease

The nation's GDP expanded at a seasonally adjusted annual rate of 2.4% as a slowdown in consumer spending was offset by a rise in business investment.

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The Daily Money

ALL THE MONEY NEWS YOU NEED TO KNOW

Thu Jul 27 2023

 

Bailey Schulz Money Reporter

@bailey_schulz

Happy almost Friday, Daily Money readers. It's Bailey Schulz here with the day's top headlines. 

Here's some good news to start your day: Despite months of recession fears amid high interest rates and inflation, the U.S. economy isn't slowing.  

The nation's gross domestic product expanded at a seasonally adjusted annual rate of 2.4% in the April-June quarter as a slowdown in consumer spending was offset by a rise in business investment, the Commerce Department said Thursday. That's up from 2% growth early in the year and above the 1.8% rise predicted by economists in a Bloomberg survey.

"The latest numbers put an exclamation mark on it: we're not in a recession and it's unlikely we'll slip into one this year or maybe even next year," Robert Frick, an economist at Navy Federal Credit Union, wrote in a note to clients.

Even so, many economists still believe a recession is likely later this year or in 2024.

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A shopper carries a Zara shopping bags while walking down the Third Street Promenade in Santa Monica, California on March 20, 2023. (Photo by Patrick T. Fallon / AFP)

Patrick T. Fallon, AFP via Getty Images

Anheuser-Busch layoffs

Anheuser-Busch is laying off hundreds of positions after Bud Light lost its spot as the top-selling U.S. beer for a second consecutive month, according to multiple reports. 

Less than 2% of its U.S. workforce will be laid off, Anheuser-Busch said in a statement to The Wall Street Journal and CNN. According to the company's website, Anheuser-Busch employs "more than 19,000 employees nationwide," which would mean roughly 380 positions or less being eliminated. 

The beer company said front-line workers such as brewery and warehouse employees will not be impacted by the layoffs, the WSJ reported.

Anheuser-Busch has watched sales decline following a consumer boycott in response to Bud Light partnering with transgender influencer Dylan Mulvaney, which led to Mexican lager Modelo Especial decrowning the American-made beer as the top-selling beer in the U.S.

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British Airways flight 252 from Turks and Caicos to London had a catering snafu Sunday. When the plane made a scheduled stop in Nassau, Bahamas, the crew went into the terminal to buy KFC and distributed pieces to passengers.

Social media posts show flight attendants serving chicken directly out of the KFC buckets.

"With limited options available at the airport, our teams sprung into action and made sure our customers onboard our flight had something to eat," the airline said in a statement. "We apologize to customers that their full meal service was not available and that we had to wing it on this occasion."

About The Daily Money

Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.

A shopper holding bags on an escalator in a mall.

The U.S. economy grew 2.4% in the second quarter. Recession fears still loom amid high interest rates and inflation, though they've eased recently.

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Anheuser-Busch to lay off hundreds of employees after Bud Light boycott

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Walmart touts its back-to-school deals as matching the same prices as last year and offering the 14 most popular items on school supply lists for under $13 total – including composition notebooks and Crayola crayons for 50 cents each.
 

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FILE - A Meta sign is displayed at the company's booth at the Game Developers Conference 2023 in San Francisco, March 22, 2023. A group of congressional Democrats reported Wednesday, July 12, that three large tax preparation firms sent "extraordinarily sensitive" information on tens of millions of taxpayers to Facebook parent company Meta over the course of at least two years.
 

Facebook $725M settlement: Only a month left to apply. How to do it.

Anyone in the U.S. with a Facebook account between May 24, 2007, and Dec. 22, 2022, is eligible to apply for the settlement. You have until Aug. 25.

Federal Reserve Board Chairman Jerome Powell testifies before a House Financial Services Committee hearing on the Federal Reserve's Semi-Annual Monetary Policy Report, on Capitol Hill in Washington, DC, on June 21, 2023. The US Federal Reserve expects to continue raising interest rates but to slow down the pace of hikes, Fed chair Jerome Powell told a Congressional hearing Wednesday.
 

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Spotify released a new interactive feature for Taylor Swift fans Wednesday letting them rank their top five favorite Swift albums.
 

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The Beefy Crunch Burrito won Taco Bell's fan favorite vote for which menu item to return to its menu in August 2023. The burrito is made with seasoned beef, seasoned rice, nacho cheese sauce, reduced-fat sour cream – and gets its crunch from Fritos Flamin' Hot Flavored Corn Chips. The burrito, removed from the menu a year later, hasn't been available since 2018, the last of several limited runs over the decade.
 

Taco Bell brings back menu item for first time since 2018

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Leadership program Lean In Girls on July 27 launched a curriculum for girls and young teens who identify with the girlhood experience on how they can embrace their  leadership superpowers and reject stereotypes about what girls can't do.
 

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