The U.S. economy grew at a quite disappointing percentage in the second quarter, the Commerce Department reported Thursday. It is a sign that the U.S. has escaped the shackles of the pandemic but still, there is more work to do.
Gross domestic product during the period of the April-to-June accelerated 6.5% on an annual basis. That is slightly better compared to 6.3% gain in the first quarter of this year. The gain is considerably lower than the 8.4% as per Dow Jones estimate.
Gross private domestic investment decreased 3.5% due to declines in held back gains of private inventory and residential investment.
“Rising imports and a 5% decline in the rate of federal government spending, despite the ballooning budget deficit, also were factors,” the Bureau of Economic Analysis report said.
The output is below its pre-pandemic time, but the National Bureau of Economic Research reported that the recession that began in February 2020 had ended just two months later, the shortest on record.
However, the second quarter is most likely to be the high point of the Covid-19 pandemic recovery.
“The good news is that the economy has now surpassed its pre-pandemic level,” wrote Paul Ashworth, chief U.S. economist at Capital Economics.