Posted on 07/30/21
| News Source: Newsmax
Fueled by vaccinations and government aid, the U.S. economy grew at a 6.5% annual rate last quarter, a solid gain that fell short of some expectations.
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 a 6.3% 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. Analysts surveyed by Refintiv had expected 8.5% growth, according to reports.
For all of 2021, the economy is expected to expand as much as 7%. If so, that would be the strongest calendar-year growth since 1984. And it would mark a sharp reversal from last year’s 3.5% economic contraction — the worst in 74 years — as a result of the pandemic.