US Adjust Economy Up In Second Quarter; 6.7% growth, expected 6.6%

The US economy grew more than expected in the second quarter of the year. image file

The gross domestic product of the world’s largest economy grew 6.7% in the second quarter of the year compared to the previous three months, according to a final estimate from the Bureau of Economic Analysis (BEA).

The progress of the US economy during the July-September period was higher than expected by analysts polled by financial investment portal, who expected a 6.6% increase – as this happened during the second data review -.

Personal consumption expenditure (PCE) rose 12% in the second quarter from the previous three months, the largest increase in the past three quarters.

Prices measured in PCE terms rose 6.5% in the second quarter – the largest increase since the third quarter of 1981 – and grew at an annual rate of 3.9%.

Finally, base PCE prices, or the metric that underestimates changes in highly volatile commodities like food or energy, rose 6.1% in the quarter and 3.4% annually. .

Analysts consulted by Investing forecast growth of 3.7% in prices measured on a PCE basis and 6.1% in the core component.

The latter measure, the interannual variance of PCE base prices, is the most closely watched by the Federal Reserve (Fed) in determining monetary policy actions in the United States.

Previous Xinhua's global economic news summary at 11:30 GMT, September 29
Next Update closes: US stocks rebound on Friday amid resilient economic data and excitement over Merck's COVID-19 pill

No Comment

Leave a reply

Your email address will not be published.