US Q2 GDP Preliminary Estimate at 6.5%...Significantly Below Expectations

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunjin Jeong] The preliminary estimate for the United States' second-quarter Gross Domestic Product (GDP) growth rate was reported to be 6.5%, according to Bloomberg News and others on the 29th (local time).

The U.S. Department of Commerce announced that the preliminary GDP growth rate for the second quarter of this year slightly expanded compared to the previous quarter. The department explained that the U.S. economy is showing signs of breaking free from the shackles of the COVID-19 pandemic, with economic activity reviving during the second quarter.

In particular, personal consumption grew by 11.8% in the second quarter, marking the largest increase since the 1950s. Jay Bryson, Chief Economist at Wells Fargo, told the Wall Street Journal (WSJ), "The economy is recovering faster than people expected."

However, the second-quarter GDP announced on this day was 2 percentage points lower than the 8.5% initially forecasted by the market. Bloomberg noted, "The economic growth forecast for the second quarter missed the mark due to the impact of supply chain constraints," and predicted that economic growth would slow down over the coming months due to risks such as reduced stimulus measures and the Delta variant virus.

This content was produced with the assistance of AI translation services.