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 by the Bureau of Economic Analysis (BEA).
The US economy’s progress in the July-September period was higher than expected by analysts polled by financial investment portal Investing.com, who had expected a 6.6% increase – as happened in the second review of the data -.
Personal consumption expenditures (PCE) rose 12% in the second quarter compared to the previous three months, the highest 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 advanced at an annual rate of 3.9%.
Finally, core PCE prices, or the measure that underestimates changes in highly volatile products like food or energy, rose 6.1% in the quarter, and increased 3.4% annually.
Analysts consulted by Investing forecast 3.7% growth in prices measured on a PCE basis and 6.1% in the core component.
This last measure, the inter-annual variance of PCE core prices, is the most closely watched by the Federal Reserve (Fed) to determine monetary policy actions in the United States.
Publication date: 09/30/2021
Tags: economy, gross domestic product, united states
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