Quarterly US economic growth adjusted upwards

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The US economy grew slightly faster than initially thought in the second quarter of the year, raising the level of gross domestic product beyond its pre-pandemic peak, as spending was supported by massive fiscal stimulus and anti-Covid-19 vaccinations.

Yesterday, the US Commerce Department said in its second estimate of GDP growth in the April-June quarter that gross domestic product increased at an annual rate of 6.6%. This growth rate was revised from the 6.5% announced in July.

Economists polled by Reuters had expected the GDP growth rate to rise in the second quarter to 6.7%.

The economy grew at a rate of 6.3% in the first quarter and made up for the sharp losses it incurred during a two-month recession due to Covid-19.

The upward adjustment to GDP growth in the most recent quarter reflects a much stronger rate of consumer spending than initially estimated.

A separate report released by the Labor Department yesterday showed that the number of government jobless claims filed for the first time rose by four thousand to a seasonally adjusted level of 353,000 in the week ending August 21.

Economists polled by Reuters had forecast 350,000 orders in the latest week.

Companies are holding on to their workers with a labor shortage caused by the coronavirus pandemic, which partly contributes to hiring 5.7 million jobs remaining below its peak in February 2020.

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