US economy grows 6.5% in Q2

US economy grows 6.5% in Q2

[Music] business update now data just out showing the us economic recovery continued in the second quarter advance estimates shows the world’s biggest economy grew at an annualized 6.5 percent but that misses consensus forecast of an 8.5 percent growth the government also revised q1 growth downward slightly to 6.3 percent will dinslow joins us live from new york now will a wide number missed forecasts by such a wide margin well someone listen look at this as a bright spark for the u.s economy considering the fact that gdp is now back to a place that it was before the covert 19 pandemic hit the united states of course if we cast our minds back a year to q2 2020 where u.s gdp uh fell by nearly 33 at an annualized basis but looking at this q2 figure for 2021 it could have been so much brighter many analysts expected to be in the region of 8.4 even earlier this year some people expected a q2 gdp to be over 10 as consumer spending continued to be fueled uh by those stimulus checks and more people uh being able to go out as covert 19 restrictions eased however supply chain issues are seen as a huge factor if we look at the auto sector for example those chip shortages really had a huge impact on the auto industry that is seen as a major reason for this weaker than expected uh bottom line for q2 gdp so what’s the growth outlook looking like for the rest of the year well if we look at goldman sachs’s estimates they have downgraded slightly they expect q3 to be in the region of eight point five percent an annualized rate and five percent uh for q4 going forward there are a couple of major uh stipulations that could have a huge impact on the strength of the us economy going forward of course front and foremost is the delta variant what impact that could have on the economy whether uh further restrictions will need to be put in place as cases continue to rise going forward inflation is another major factor as well the federal reserve have insisted that inflation will be transitory and those those prices on goods will begin to ease in the months ahead as those supply chain pressures begin to ease not everyone though is convinced that’ll be closely watched indeed we’ve heard just this week from fed chair jerome powell he insists that the economy is progressing however he wants to see far more strength when it comes to the us labor market before considering things like easing their bond buying program or considering when to raise interest rates again in the us well thanks for that bill denslow in new york
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US economy grows 6.5% in Q2

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