US GDP Increased , at Rate of 6.5 Percent in Second Quarter.
Preliminary data released by the U.S. Commerce Department... .
... revealed a slight rise in the economy with mixed implications.
The second quarter Gross Domestic Product (GDP) fell significantly short of Wall Street's 8.4 percent prediction.
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But the GDP improved from the first quarter increase of 6.3 percent.
The good news is that the economy has now surpassed its pre- pandemic level, Paul Ashworth, Capital Economics, via CNBC.
But with the impact from the fiscal stimulus waning, surging prices weakening purchasing power, ... , Paul Ashworth, Capital Economics, via CNBC.
... the delta variant running amok in the south and the saving rate lower than we thought, we expect GDP growth to slow to 3.5% annualized in the second half of this year, Paul Ashworth, Capital Economics, via CNBC.
Several factors led to the less-than-predicted second quarter growth, .
Including a fall in gross private domestic investment... ... and a five percent drop in federal government spending.
Analysts point out that a pre-pandemic 6.5 percent second quarter growth would be considered the strongest since 2003.
Unemployment data also released on July 29 indicated a drop in first-time filings... .
... but the number remains twice as high as pre-pandemic levels