the economy grew by 0.2% in the second quarter after 0.3% in the first quarter falling short of the latest staff projections growth stemmed mainly from net exports and government spending private domestic demand weakened as households consumed less firms cut down business investment and housing investment dropped while Services supported growth industry and construction contributed negatively according to survey indicators the recovery is continuing to face some headwinds we expect the recovery to strengthen over time as rising real incomes allow households to consume more the gradually fading effect of restrict Ive monetary policy should support consumption and investment exports should also continue contributing to the recovery AS Global demand Rises the labor market remains resilient the unemployment rate was broadly unchanged in July at 6.4% at the same time employment growth slowed to 0.2% in the second quarter from 0 3% in the first recent survey indicators point to a further moderation in demand for labor and the job vacancy rate has fallen closer to pre-pandemic levels