WASHINGTON, D.C., USA — Fueled by vaccinations and government aid, the U.S. economy grew at a solid 6.5% annual rate last quarter in another sign that the nation has achieved a sustained recovery from the pandemic recession.
The total size of the economy has now surpassed its pre-pandemic level. The government estimated that the nation’s gross domestic product accelerated in the April-June quarter from an already robust 6.3% annual growth rate in the first quarter of the year.
The quarterly figure fell well below the 8%-plus annual growth rate that many economists had predicted for the second quarter. But the miss was due mainly to bottlenecks in supply chains related to the rapid reopening of the economy.
Financial Advisor Mark Grywacheski told us what traders are concerned about on Wall Street though. He said economic growth is still being somewhat constrained by the ongoing labor shortage and those disruptions to global supply chains.
"It's limiting manufacturers' ability to produce those goods to keep up with the strong consumer demand."
Your Money with Mark aired live during the 5 to 5:30 a.m. hour Monday, August 2nd.