US GDP Up By 6.5% In Second Quarter Of 2021 - Commerce Dept.
Sumaira FH Published July 29, 2021 | 07:31 PM
US Gross Domestic Product expanded by 6.5 percent in the second quarter of 2021, the Commerce Department said on Thursday in its first reading for April-June growth amid the ongoing recovery from the coronavirus pandemic
WASHINGTON (UrduPoint News / Sputnik - 29th July, 2021) US Gross Domestic Product expanded by 6.5 percent in the second quarter of 2021, the Commerce Department said on Thursday in its first reading for April-June growth amid the ongoing recovery from the coronavirus pandemic.
"Real gross domestic product (GDP) increased at an annual rate of 6.5 percent in the second quarter of 2021, reflecting the continued economic recovery, reopening of establishments, and continued government response related to the COVID-19 pandemic," the Commerce Department said in a statement.
That rate of growth was slightly better than the 6.3 percent gain in the first quarter, which was revised slightly from the previous published figure of 6.4 percent, but still fell well below expectations.
Economists polled by US media had forecast a second quarter growth of 8.5 percent on the average.
"This is a miss," economist Adam Button said in a post on ForexLive.
"Companies are running lean because of supply chain bottlenecks. Meanwhile, the performance from the consumer was solid but perhaps not as strong as the market hoped, given the potential for a reopening boom."
US consumer confidence increased for a fifth straight month in June to return to levels seen before the coronavirus outbreak 16 months ago, the Conference board said earlier this week.
The Commerce Department said growth in the second quarter was helped by federal loans to businesses and grants to state and local governments. But social benefits to households, such as the direct economic impact payments, declined, it added.
The Federal Reserve has forecast a 6.5 percent GDP growth for all of 2021, although it says it does not expect "full employment" - defined by an unemployment rate of 4 percent or lower - before 2023. The unemployment rate stood at 5.9 percent at the end of June.
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