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US economic growth revised higher, but falls short of expectations

August 26, 2021
in Mobile Home, Markets & Economy
0
Biden admin to announce historic increase in food stamp benefits: reports

GDP grew 6.6% in the second quarter

By Jonathan Garber FOXBusiness

Cornerstone Macro co-founder and chief economist Nancy Lazar argues that stimulus is keeping consumer spending numbers strong.

The U.S. economy grew faster than previously thought during the second quarter, but that was not enough to exceed economists’ expectations.

Gross domestic product, the broadest measure of economic performance, increased 6.6% in the three months through June, according to a second estimate released Thursday by the Commerce Department. Economists surveyed by Refinitiv had expected 6.7% growth.

The initial estimate released last month showed 6.5% growth as supply-chain disruptions and labor shortages held the economy back. The U.S. economy grew at a 6.3% pace in the first quarter.

The second estimate included upward revisions to personal consumption expenditures, nonresidential fixed investment, exports, and state and local government spending. Those were partially offset by decreases in private inventory investment, residential fixed investment, and federal government spending.

Imports, which are subtracted from GDP, increased.

A third estimate will be released on September 30.

 

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