Thanks to vaccinations and government aid, experts say the U.S. economy grew at a solid 6.5% annual rate last quarter — another sign that the nation has achieved a sustained recovery from the pandemic recession. The total size of the economy has now surpassed its pre-pandemic level. Thursday’s report from the Commerce Department estimated that the nation’s gross domestic product — its total output of goods and services — accelerated in the April-June quarter from an already robust 6.3 percent annual growth rate in the first quarter of the year. The quarterly figure was less than analysts had expected, but the economy was likely held back mainly by supply shortages in goods, components, and labor.
CNN Business/Anneken Tappe
The US economy grew at an annual rate of 6.5% in the second quarter
The US economy in the second quarter expanded at a slower rate than expected but still at its fastest pace since last fall, growing at a seasonally adjusted, annualized rate of 6.5%.
In terms of real gross domestic product — the broadest measure of economic activity — the economy has now recovered in that has grown bigger than its pre-pandemic size.
It was a worse performance than expected, as economists had forecast an annualized growth rate of 8.5%, and it was also little changed from the first quarter when the economy grew at an annual rate of 6.3%.
Nevertheless, it was the biggest jump in growth since the nation roared back in the third quarter of 2020 from the lockdown-driven recession.
Continue reading, here.
Fiscal stimulus has US economy on ‘sugar high’, market expert says
While awaiting second-quarter GDP numbers, Stifel chief equity strategist Barry Bannister suggested that growth will be strong due to a stimulus “sugar high.”
Although the U.S. economy likely grew at the second-fastest pace since 1983, Bannister said on FOX Business’ “Mornings with Maria” Thursday that the sugar high will have to correct itself through Fed adjustments.
You can watch the full interview, here.
Kitco News/Anna Golubova
Gold price trades near daily highs as U.S. Q2 GDP comes in well below expectations
The U.S. economy grew less than expected in the second quarter, the U.S. Commerce Department said on Thursday.
The preliminary estimate showed that the U.S. second-quarter GDP rose 6.5% versus markets’ expectations of an advance of 8.5%. The first-quarter data was also revised down to 6.3% from 6.4% growth.
“The increase in real GDP in the second quarter reflected increases in personal consumption expenditures (PCE), nonresidential fixed investment, exports, and state and local government spending that were partly offset by decreases in private inventory investment, residential fixed investment, and federal government spending,” the report said.
Gold was largely unchanged and remained near its daily highs, with August Comex gold futures last trading at $1,823.70, up 1.33% on the day.
Personal consumption was boosted by an increase in services, including food and accommodations. There was also an increase in transportation and intellectual property products, led by research and development.
You can read the full story, here.