WASHINGTON, May 27 (Xinhua) – The U.S. economy grew at an annual rate of 6.4 percent in the first quarter of 2021, the U.S. Department of Commerce said Thursday in its second estimate.
Upward revisions in consumer spending and non-residential fixed investment were offset by downward revisions in exports and investment in private inventory, according to the latest estimate released by the Office of Economic Analysis. department, one month after the “advanced” estimate.
Imports were revised, which are a remainder in the calculation of gross domestic product (GDP).
“First-quarter GDP growth reflected continued economic recovery, reopening of establishments and continued government response related to the COVID-19 pandemic,” the office said.
Jay Bryson and Shannon Seery, economists at Wells Fargo Securities, wrote in an analysis that the overall real GDP growth rate was driven by broad-based increases in many of the underlying spending components.
They noted that gross domestic income grew at a robust rate of 6.8 percent, driven in part by stimulus checks and complementary unemployment benefits that were included with the tax relief packages signed in the law in December and March.
The latest GDP data was released the same day the Department of Labor reported that initial unemployment claims in the country fell for the fourth consecutive week, to 406,000, a new low since the COVID-19 pandemic hit the labor market early last year.
“With the reopening of the services sector, while spending on other households and businesses remains strong, I expect rapid growth to continue for some time before slowing to a still robust pace next year,” Randal said. Quarles, vice president of oversight of the Federal Reserve, at a virtual event held by the Brookings Institution on Wednesday.
Quarles said a significant part of the recent rise in inflation will be “transient” as he expects inflation to start declining at some point in the coming months and to be approaching the longer-term target again. of the Fed of 2% at some point during 2022.
The Fed official also noted that labor market improvement has been slower than he would have liked. “The unemployment rate has fallen by only 0.6 percentage points, to 6.1%, and the labor force participation rate remains almost the same as at the time of the December meeting,” he said.