Market Data
October 1, 2021
Final Revision: U.S. GDP Grew at a 6.7% Rate in Q2
Written by David Schollaert
U.S. gross domestic product (GDP) grew by a healthy 6.7% in the second quarter of 2021 on an annualized basis, slightly faster than the 6.6% previously estimated, according to the Bureau of Economic Analysis (BEA). This third and final review was adjusted higher thanks to upward revisions in personal consumption expenditures, exports and private inventory investment. Those were partially offset by increased imports, which are a subtraction in the calculation of GDP.
Although supply-chain disruptions and labor shortages continue to hinder the U.S. economy, the latest upward revision to Q2’s results marks the fourth consecutive quarter of growth in the U.S. economy. Yet, some economists note that the second quarter could represent the peak in growth as fiscal stimulus measures start to wind down. Many are looking past the latest GDP data and instead are focused on how a fourth wave in COVID-19 infections during the summer has impacted activity. Growth estimates for the third quarter are below a 5% rate, while inflation climbed at a 6.5% annual clip in the second quarter.
