US economic growth slows in second quarter, but domestic demand robust
www.reuters.com

... Consumer spending, which accounts for more than two-thirds of U.S. economic activity, surged at a 3.2% rate after abruptly slowing to a 0.5% growth pace in the January-March quarter.

In addition to larger tax refunds, spending was boosted by higher-income households that are benefiting from strong growth in asset prices, but a recent stock market sell-off could slow the momentum. The recently ended FIFA World Cup tournament also likely added to the strength as did midterm election-related spending by nonprofits.

The AI investment boom, which is showing no signs of slowing despite investor concerns that valuations of many technology companies have become stretched, also helped to boost domestic demand. Business spending on equipment increased at a 15.2% pace, notching a second straight quarter of double-digit growth. ...

Meta cash flow craters as Zuckerberg doubles down on AI spending
www.reuters.com

... Meta Platforms reported a 91% drop in second-quarter free cash flow on Wednesday, underscoring the financial strain of the social media giant's costly AI buildout amid an uncertain payoff.

The Facebook and Instagram parent company reported free cash flow of $784 million in the second quarter ended June 30, down from $8.55 billion a year earlier, sending its shares down 10% in extended trading. ...