The preliminary estimate of gross domestic product growth is out and, well, the numbers fall a bit below economists’ expectations.
Real gross domestic product (GDP) increased at an annual rate of 6.5 percent in the second quarter of 2021 … according to the “advance” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 6.3 percent (revised).
The GDP estimate released today is based on source data that are incomplete or subject to further revision by the source agency… The “second” estimate for the second quarter, based on more complete data, will be released on August 26, 2021.
CNBC reports the numbers this way.
the U.S. economy rose at a disappointing rate in the second quarter, the Commerce Department reported Thursday in a sign that the U.S. has escaped the shackles of the Covid-19 pandemic but still has more work to do.
Gross domestic product, a measure of all goods and services produced during the April-to-June period, accelerated 6.5% on an annualized basis. That was slightly better than the 6.3% gain in the first quarter, which was revised down narrowly.
While that would have been strong prior to the pandemic, the gain was considerably less than the 8.4% Dow Jones estimate.
Gross private domestic investment fell 3.5% as declines in private inventory and residential investment held back gains.
The Associated Press writes a more upbeat lead:
Fueled by vaccinations and government aid, the U.S. economy grew at a solid 6.5% annual rate last quarter in another sign that the nation has achieved a sustained recovery from the pandemic recession. The total size of the economy has now surpassed its pre-pandemic level.
Thursday’s report from the Commerce Department estimated that the nation’s gross domestic product — its total output of goods and services — accelerated in the April-June quarter from an already robust 6.3% annual growth rate in the first quarter of the year.
The quarterly figure was less than analysts had expected. But that was mainly because supply chain bottlenecks exerted a stronger-than-predicted drag on companies’ efforts to restock their shelves.
The 6.5% still does look pretty good. Of more concern are the headwinds of labor shortages, continued supply chain problems, and, perhaps most important, progress in stifling the latest uptick in COVID cases.