The U.S. economy continues its robust growth, even as concerns about the trajectory of the delta variant mount. The U.S. Bureau of Economic analysis reports,
Real gross domestic product (GDP) increased at an annual rate of 6.6 percent in the second quarter of 2021 (table 1), according to the “second” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 6.3 percent.
The BEA chart below illustrates the recovery.
The AP reports,
The U.S. economy grew at a robust 6.6% annual rate last quarter, slightly faster than previously estimated, the government said Thursday in a report that pointed to a sustained consumer-led rebound from the pandemic recession. But worries are growing that the delta variant of the coronavirus is beginning to cause a slowdown.
Personal income and spending are also both up, though inflation is taking a toll..
Personal income increased $225.9 billion (1.1 percent) in July according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) increased $198.0 billion (1.1 percent) and personal consumption expenditures (PCE) increased $42.2 billion (0.3 percent).
Real DPI increased 0.7 percent in July and Real PCE decreased 0.1 percent; goods decreased 1.6 percent and services increased 0.6 percent. The PCE price index increased 0.4 percent. Excluding food and energy, the PCE price index increased 0.3 percent.
As the AP reports, the pandemic is constraining spending.
Growth in U.S. consumer spending slowed in July to a modest increase of 0.3% as infections from the delta variant spread, while inflation over the past 12 months hit its fastest pace in three decades.
Last month’s spending was not even a third of the 1.1% rise in June, the Commerce Department reported Friday.
It was the clearest signal yet that the surge in the delta variant of the coronavirus has had an impact on consumer spending, the driving force in the economy.
So far, resilience. But more fragile than we’d hoped to see as summer fades to fall.