US GDP grew by 6.5% in the second quarter, well below expectations | Bank News
Supply chain restrictions and labor shortages continue to inhibit US economic growth.
The U.S. economy grew substantially in the second quarter, but it was still below expectations because despite the substantial increase in consumer spending, supply chain disruptions and labor shortages continued to inhibit economic growth.
The annual growth rate of gross domestic product (GDP) in the second quarter of 2021 is 6.5%. U.S. Bureau of Economic Analysis.
In the first quarter, real GDP grew by 6.3%, which was revised downward from 6.4%.
Consumer spending, which is the engine of US economic growth, increased by 11.8% in the second quarter, exceeding expectations.
Economic growth is expected to remain strong for the rest of this year. However, the return of the coronavirus infection caused by the Delta variant poses a serious risk for expansion.
People are also increasingly worried about the risks and effects of long-term inflation.
Policy makers at the U.S. Central Bank Unanimous vote Maintain interest rates unchanged at the end of the two-day meeting on Wednesday. The Fed also stated that it will continue to support the country’s economic recovery through monthly purchases of US$120 billion in bonds.
Given that the Fed has long stated that it will keep the benchmark interest rate close to zero until the US labor market has fully recovered from the COVID-19 hit last year, this statement is not surprising.
But Fed Chairman Jerome Powell said at a virtual press conference that if the economic recovery faces inflation risks, the Fed will be prepared to reconsider current monetary policy.
International Monetary Fund Tuesday renew Its growth forecasts for the US economy are 7.0% and 4.9% in 2021 and 2022, respectively, which are 0.6 and 1.4 percentage points higher than the preliminary forecast in April.
As early as March, the administration of President Joe Biden injected US$1.9 trillion in coronavirus pandemic relief funds into the U.S. economy, bringing the total government assistance to nearly 6 trillion since the pandemic began in the United States in March 2020. Dollar.
Nearly half of Americans have been vaccinated against the coronavirus, and they have started traveling, going to restaurants and participating in events.
The stock market and rising house prices have helped cushion Americans’ savings accounts and contributed to a surge in consumer spending. More importantly, as American companies try to attract workers to return to work, wages are rising.
U.S. Department of Labor Thursday Report As of the week of July 24, the number of initial jobless claims decreased by 24,000, to 400,000 after seasonal adjustment.
According to data from the Department of Labor, as of the week of July 17, the seasonally adjusted early insured unemployment rate was 2.4%, which was the same as the uncorrected unemployment rate in the previous week.