The US economy grows at an annual rate of 6.5% in the second quarter
The US economy grew at a lower than expected annual rate of 6.5% in the second quarter, marking a return to a level of overall economic activity above pre-pandemic levels, the Commerce Department reported.
However, the 6.5% gain was significantly lower than the Dow Jones’ estimate of 8.4%, the Xinhua News Agency reported.
In the first quarter, real GDP grew 6.3 percent, 0.1 percentage point lower than previously reported, according to the latest data released by the department on Thursday.
The increase in real GDP in the second quarter reflected increases in personal consumption expenditure (PCE), non-residential fixed investment, exports, and state and local government spending that were partially offset by declines in private investment in inventories, residential fixed investments and federal investments. government spending, according to the Commerce Department report.
Imports, which is a subtraction in the calculation of GDP, have increased.
The GDP data came out a day after the Federal Reserve signaled it was getting closer to cutting back on asset purchases amid concerns about soaring inflation and the rapid spread of the Covid-variant. 19 Delta.
In the latest update to its World Economic Outlook, the International Monetary Fund (IMF) on Tuesday forecast the U.S. economy to grow 7.0 percent this year, up 0.6 percentage point from at its April screening.
The upward revision reflects the planned legislation of additional budget support in the second half of 2021 and improved health parameters.
In 2022, the US economy is expected to grow 4.9%, according to the IMF.