U.S. GDP (Gross Domestic Product) – the broadest measure of economic performance – came in well below expectations, growing at a 6.5% annual rate during the second quarter, according to an advance estimate released Thursday by the U.S. Commerce Department. Analysts surveyed by Refintiv were expecting 8.5% growth. First-quarter GDP was revised down to 6.3% from 6.4%.
Initial claims for unemployment benefits of 400,000 were higher than expected as the total of those receiving benefits rose by nearly 600,000.
The U.S. economy rose at a disappointing rate in the second quarter… the Commerce Department reported Thursday.
Gross domestic product, a measure of all goods and services produced during the April-to-June period, accelerated 6.5% on an annualized basis… considerably less than the 8.4% Dow Jones estimate.
Gross private domestic investment fell 3.5% as declines in private inventory and residential investment held back gains. Rising imports and a 5% decline in the rate of federal government spending, despite the ballooning budget deficit, also were factors, the Bureau of Economic Analysis report said.
The personal savings rate dropped sharply, tumbling to $1.97 trillion from $4.1 trillion in the previous period.
A separate data point reported Thursday showed that 400,000 people filed initial claims for unemployment benefits for the week ended July 24. That level is nearly double the pre-pandemic norm and was above the 380,000 Dow Jones estimate.
Continuing claims edged higher to 3.27 million, according to data that runs a week behind the headline number. The total of those receiving benefits rose by nearly 600,000 to 13.16 million, according to data through July 10.
MacDailyNews Take: Good times.