The Commerce Department reported Thursday that the U.S. economy grew at an annualized rate of 6.4% last quarter. Thanks to business investment and consumer spending, the economy has now surpassed pre-pandemic levels.
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% annual growth rate in the first quarter of the year.
For all of 2021, the economy is expected to expand perhaps 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 3.4% economic contraction — the worst in 74 years — as a result of the pandemic.
Some economists say the second quarter might have been even larger but the sudden reopening of the country resulted in some bottle-necks in supply-chains. For instance, the real estate marketed has been booming, but some new construction was slowed as builders struggled to obtain materials.
Remember ‘the former guy’ telling folks the economy would crash, unemployment would skyrocket, and the stock market would tank if Joe Biden were to win the election? And yet…
The US economy has grown almost as much in six months as many major forecasters expected for the entire year (pre-American Rescue Plan forecasts). The economy is rapidly outpacing all of the major pre-ARP forecasts. pic.twitter.com/LLWCr6fMNc
— Jason Furman (@jasonfurman) July 29, 2021
“The total size of the economy has now surpassed its pre-pandemic level.”
— Kaivan Shroff (@KaivanShroff) July 29, 2021
The U.S. economy grew at a solid 6.5% annual rate last quarter.
The total size of the economy has now surpassed its pre-pandemic level. https://t.co/2S7RS42ciA
— ABC News (@ABC) July 29, 2021
U.S. economy grew 1.6% in the second quarter, a 6.5% annual rate, returning to its pre-Covid size, vaccinations and federal aid helped. The next test will be whether that momentum can continue as Covid cases rise, masks return, and government help wanes https://t.co/O9kHeQiCBp
— Alfons López Tena (@alfonslopeztena) July 29, 2021