Gross domestic product, a measure of all goods and services produced during the April to June period, accelerated 6.4% on an annualized basis. This was slightly better than the 6.3% gain in the first quarter, which was revised downward slightly.
While it would have been strong before the pandemic, the gain was significantly lower than the Dow Jones’ estimate of 8.4%.
Gross private domestic investment fell 3.5% as declines in private inventories and residential investment dampened gains. Increased imports and a 5% drop in the federal government’s spending rate, despite the growing budget deficit, were also a factor, according to the Bureau of Economic Analysis report.
The overall increase is attributable to increased personal spending, which rose 11.8%, with consumers accounting for 69% of all activities. Non-residential fixed investment, exports, and state and local government spending also helped boost output.
The gain was also a measure of how far the economy has traveled from closures imposed during the early days of the pandemic, when the government across the country halted large swathes of economic activity to combat the spread. of Covid-19.
At its lowest, the economy collapsed 31.4% in the second quarter of 2020; it rebounded 33.4% over the next three months and has continued to normalize since.
In the years leading up to the pandemic, the second quarter gain would have been the strongest since the third quarter of 2003.
Although production remained below its pre-pandemic level, the National Bureau of Economic Research said the recession that began in February 2020 ended two months later, the shortest on record.
Yet some sectors of the economy remain underwater, with the labor market in particular struggling to return to normal.
A separate data point released Thursday showed that 400,000 people filed initial claims for unemployment benefits for the week ending July 24. This level is almost double the pre-pandemic norm and was above the Dow Jones estimate of 380,000.
This is last minute news. Please come back here for updates.
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