Yet even with the new upward revision, this growth remains below expectations, noted Mike Englund, chief economist at Action Economics.
The limited growth is largely due to “supply chain disruptions, which actually become more severe in the third quarter,” Englund added in a note to customers.
Americans, however, spent heavily on services in the spring and early summer – especially on going out to eat and travel – as vaccination rates increased. They also spent on pharmaceuticals and clothes and shoes. Hotels and restaurants contributed the most to the GDP growth rate in the industry comparison.
The report also included a corporate profit tally: U.S. banks and financial firms saw profits soar by $ 52.8 billion in the second quarter, up from a meager increase of $ 1.3 billion in the first quarter. .
Profits for all other companies rose $ 221.3 billion, from $ 133.2 billion in the first three months of the year.
Unemployment registrations at their highest for seven weeks
“However, it’s a very different situation now than then, so I would be very careful in making that comparison” with the start of the pandemic, PNC chief economist Gus Faucher said in a note to clients, adding that “the level of initial complaints is now only about 6% of what it was then.”
Continuing unemployment claims, which count workers who have applied for benefits for at least two consecutive weeks, were little changed in the week ended September 18.