U.S. gross home product grew at a 6.7% annualized charge within the second quarter of 2021, a closing estimate from the Bureau of Financial Evaluation confirmed Thursday morning. The slight upward revision signifies that financial progress from April by way of June was on the right track following final yr’s pandemic-induced recession.
The numbers are an about-face from the identical interval a yr in the past when the economic system stagnated and plunged a document 31.4%.
FED HOLDS INTEREST RATES STEADY AS IT EYES FUTURE TAPERING
The primary quarter of this yr additionally noticed breakneck progress, with the economic system increasing by 6.4% as vaccines turned extra accessible and companies started seeing shoppers begin to return.
Financial progress has largely been pushed by a return of the retail, service, and hospitality industries, which nosedived through the top of the pandemic amid shoppers’ fears of contracting COVID-19 and authorities restrictions on companies.
Regardless of the expansion within the second quarter, GDP estimates for the remainder of the yr have been revised down by the Federal Reserve and economists due to surging circumstances of the delta variant, which started this summer season.
The central financial institution lately slashed its GDP prediction from 7% in 2021 to five.9% and slashed its progress forecast from 3.8% to three.3% for subsequent yr in gentle of the impression that the brand new pressure is having on the economic system.
Goldman Sachs additionally lately revised down its GDP forecast for 2021 from 6.2% to five.7%, and Wells Fargo additionally minimize a few of its GDP predictions.