The U.S. economy grew at a solid 6.5 percent annual rate last quarter, less than analysts had expected, but the economy was likely held back mainly by supply shortages in goods, components and labor
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.
Yet overhanging the rosy economic forecasts is the possibility of a resurgent coronavirus in the form of the highly contagious delta variant. The U.S. is now averaging more than 60,000 confirmed new cases a day, up from only about 12,000 a month ago. Should a surge in viral infections cause many consumers to hunker down again and pull back on spending, it would weaken the recovery.
Consumer confidence has reached its highest level since the pandemic struck in March 2020, a key reason why retail sales remain solid as Americans shift their spending back to services — from restaurant meals and airline trips to entertainment events and shopping sprees. Businesses are also showing renewed faith in the economy, with orders for manufactured goods pointing to solid corporate investment.
The recovery, in fact, has been so rapid, with pent-up demand from consumers driving growth after a year of lockdowns, that one looming risk is a potential spike in inflation that could get out of control. Consumer prices jumped 5.4% in June from a year ago, the sharpest spike in 13 years and the fourth straight month of sizable price jumps.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
The U.S. grew at a 6.5% pace in the spring, GDP shows, as economy rallied from CovidThe U.S. grew at a blistering pace in the spring and repaired much of the damage caused by the pandemic thanks to widespread coronavirus vaccinations and a...
Consulte Mais informação »
Fed holds rates steady, says sectors most affected by pandemic are showing improvementFederal Reserve officials vote to keep interest rates at current levels, extending the central bank's support for the economy as Covid-19 infection rates surge and vaccination rates stall out.
Consulte Mais informação »
Afghan civilian deaths, Taliban attacks rising as U.S. withdrawsCivilian casualties and Taliban attacks in Afghanistan are mounting as the U.S. withdrawal nears completion and the Afghan military continues its collapse, according to a new report from a U.S. government watchdog.
Consulte Mais informação »
How Tesla shrugged off a $23 million bitcoin loss last quarter: CNBC After HoursLora Kolodny explains Tesla's record-breaking quarter, and why it's so hard to know how the company's bitcoin holdings are performing.
Consulte Mais informação »
McConnell strives to counter 'bad advice' to boost U.S. Republican vaccination rateU.S. Senate Republican leader Mitch McConnell blamed misinformation for the low rates of COVID-19 vaccination among Americans, which are fueling a rise in coronavirus cases, particularly in Republican-dominated states.
Consulte Mais informação »