In the second quarter ending in June, the USA economy grew by 6.6% compared to the second quarter of 2020, when the COVID-19 quarantines hit the world hard.
Economists expected the US economy to grow by 6.7 percent in this period.
The leading data announced at the end of July was below expectations and was announced as 6.5 percent. However, this growth brought the US GDP to pre-pandemic levels.
This strong growth data seems to support the fact that the USA Federal Reserve (Fed) and other central banks, which will discuss the 2021 economic policies in Jackson Hole today, start to reduce monetary expansion in the near future.
Surprise in inflation indicators
However, the fact that the data is below expectations may cause Fed Chairman Jerome Powell, whose speech in Jackson Hole tomorrow will be listened carefully by the markets, to soften his message for tapering. Some experts suggest that the tapering, which is expected to start before the end of this year, may shift to 2022 with negative data.
The GDP Price Index, on the other hand, did not fall contrary to expectations, it rose. The index, which recorded an increase of 6.1 percent in the first quarter and provides an insight into the prices in the US economy, was expected to slow down to 6.0 percent in the second quarter, but the data rose to 6.2 percent.
Core personal consumption expenditures prices increased by 6.10 percent in the second quarter, in line with expectations.
Personal consumption expenditures (PCE) prices, on the other hand, rose 6.5 percent year-on-year in the second quarter, after 3.8 percent in the first quarter.
Real consumer spending, on the other hand, increased by 11.9 percent in the second quarter, after increasing 11.8 percent in the first quarter.
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