The US recorded a disappointing 6.5% jump in the gross domestic output in the second quarter, missing an estimated 8.4%. The GDP increase was still better than 6.3% posted in the first quarter.
- The increase in GDP was mainly fueled by an uptick in personal expenditures which rose by 11.8%
- The price index for gross domestic purchases surged by 5.7%, a higher increase compared to the 3.9% jump in the first quarter.
- Personal outlays rose by $680.8 billion, a higher increase than the $538.8 billion jump in the previous quarter.
- The personal savings rate plunged to $1.97 trillion from $4.1 trillion in the previous quarter.
- Disposable personal incomes shed 26.1% or $1.42 billion compared to an uptick of 63.7% or $2.27 trillion in the first quarter.
- Current-dollar personal incomes fell by $1.32 trillion or 22.0%, compared to an increase of 56.8% or $2.33 trillion in the first quarter.
The rise in second quarter GDP reflected continued economic reopening and government’s response to COVID-pandemic.
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Source: Bureau of Economic Analysis