The U.S. economy grew 6.6 percent in the second quarter, surpassing pre-epidemic levels.

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source: www.kansas.com

The U.S. economy grew 6.6 percent in the second quarter, surpassing pre-epidemic levels.

The Commerce Department reported that growth in the gross domestic product - total production of goods and services - accelerated between April and July 2021.

Goldman Sachs cut its forecast for annual growth in the current July-September quarter from 9% to 5.5%, citing the effects of the delta variance. Similarly, Wells Fargo economists have lowered their GDP forecast for the third quarter from 8.8% to 6.8% year-on-year due to an increase in the number of Covid 19 cases.

Fueled by vaccinations and government aid, the U.S. economy grew at an annual rate of 6.6% in the second quarter, in a new sign that the nation is recovering steadily from the pandemic recession. And now it has surpassed the previous level.

The Commerce Department report released on Thursday estimates that GDP growth - gross domestic product - in the April-July quarter after a strong annual growth rate of 6.3% in the January-March period came fast

Many economists predict the latest figures of less than 7% per year. The contradiction was mainly due to the closure of the supply chain, which was related to the rapid reopening of the economy. The bottlenecks put a more significant burden than anticipated on companies' resupply efforts.

Consumer spending - the main engine of the U.S. economy - rose sharply for the second consecutive quarter, this time by 11.8% annually.

The modest increase in government estimates for April-June growth reflects, in part, higher business investment, which grew at a solid rate of 9.3%, and export sales, which fell in the first quarter to 6, Soared at a rate of 6%. However, countering that strength was a significant drag on inventory replenishment.

Goldman Sachs cut its forecast for annual growth in the current July-September quarter from 9% to 5.5%, citing the effects of the delta variance. Similarly, Wells Fargo economists have lowered their GDP forecast for the third quarter from 8.8% to 6.8% year-on-year due to an increase in the number of Covid 19 cases.

Some analysts have also lowered their outlook for the entire year, albeit in smaller numbers, anticipating that the economy could pick up again in the last three months of 2021If coronavirus cases decrease after more vaccines are administered. But the uncertainty remains.