Movie Reviews

US economy soared in the first quarter, growing at a 6.4% rate

US gross domestic product — the broadest measure of economic activity — grew at an annualized pace of 6.4% in the first three months of the year, adjusted for seasonal swings, the Commerce Department reported Thursday.
GDP growth is a good sign that the US economy is moving in the right direction, even though growth has slowed from the enormous 33.4% annualized jump in the second quarter of 2020 when the economy started to reopen.

The government uses the ‘annualized’ rate, which assumed the quarterly growth rate would continue for a full year, because it makes it easier to compare numbers of different periods of time.

More work to be done

Much of the economy is growing again, but there are still pockets where things look much more dire.

Millions of Americans remain out of work. Data from the Labor Department showed another 553,000 workers applied for unemployment benefits last week, adjusted for seasonal swings. More than a year after jobless claims first spiked as businesses shuttered, the weekly number of benefit applications is still more than double from its pre-pandemic level.

And the American economy runs on consumer spending, so solving the jobless crisis is a key aspect to returning the economy to its previous strength.

But until businesses are fully reopen and Americans feel no impediment to travel and visit restaurants as they did before Covid-19, getting the jobs and growth stats back to normal will be difficult.

Between January and March, personal incomes increased by $2.4 trillion, or 59%, compared with the final quarter of 2020 — when rising virus infections spurred renewed job losses in the services industry.

The government’s relief efforts including stimulus checks had a lot to do with the rise in incomes, according to the Commerce Department.

For now, people are also still saving more than in pre-pandemic times. The personal savings rate stood at 21% in the first quarter, for a total of $4.12 trillion.

 Source link

Back to top button
SoundCloud To Mp3