2021.07.2912:41:00UTC+00U.S. GDP Jumps Less Than Expected In Second Quarter

A report released by the Commerce Department on Thursday showed a significant increase in U.S. gross domestic product in the second quarter of 2021, although the pace of growth fell short of economist estimates.

The Commerce Department said real GDP surged up by 6.5 percent in the second quarter following a 6.3 percent jump in the first quarter. Economists had expected GDP to spike by 8.5 percent.

The GDP growth in the second quarter reflected increases in consumer spending, non-residential fixed investment, exports, and state and local government spending.

However, decreases in private inventory investment, residential fixed investment, and federal government spending limited the upside along with an increase in imports, which are a subtraction in the calculation of GDP.