US economy grew at a solid 6.5% rate last quarter

Associated PressUpdated: Friday, July 30, 2021, 12:12 AM IST
article-image
For all of 2021, the economy is expected to expand about 7 per cent. That would be the strongest calendar-year growth since 1984. | Twitter

Fuelled by vaccinations and government aid, the U.S. economy grew at a solid 6.5 per cent annual rate last quarter in another sign that the nation has achieved a sustained recovery from the pandemic recession.

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 per cent annual growth rate in the first quarter of the year. The figure was less than analysts had expected, but the economy was likely held back mainly by supply shortages in goods, components and labour.

For all of 2021, the economy is expected to expand about 7 per cent. That would be the strongest calendar-year growth since 1984. And it would mark a sharp reversal from last year's 3.5 per cent economic contraction - the worst in 74 years - as a result of the pandemic.

Yet overhanging the rosy economic forecasts is the possibility of a resurgent coronavirus in the form of the highly contagious delta variant.

The U.S. is now averaging more than 60,000 confirmed new cases a day, up from only about 12,000 a month ago. Should a surge in viral infections cause many consumers to hunker down again and pull back on spending, it would weaken the recovery.

(If you have a story in and around Mumbai, you have our ears, be a citizen journalist and send us your story here. )

(To receive our E-paper on WhatsApp daily, please click here.  To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Maharashtra: Karan Adani, Anant Ambani on economic advisory panel along with Tata sons chairman

Maharashtra: Karan Adani, Anant Ambani on economic advisory panel along with Tata sons chairman

ED seizes almost ₹1,000 cr linked to crypto frauds

ED seizes almost ₹1,000 cr linked to crypto frauds

G20 Summit: Go First to operate chartered flights for meetings across India

G20 Summit: Go First to operate chartered flights for meetings across India

NITI Aayog CEO credits PLI schemes for attracting Rs 45,000 cr in investments

NITI Aayog CEO credits PLI schemes for attracting Rs 45,000 cr in investments

ChatGPT will pull off Cyberattacks and phishing scams this year: Experts

ChatGPT will pull off Cyberattacks and phishing scams this year: Experts