The US Economy Grew by 6% in the Second Quarter of 2021

The United States recorded economic growth of 6.5% in the second quarter of 2021 year-on-year. This percentage is higher than the previous quarter's 6.3%. However, the achievement is still below market predictions of 8.5%.

Personal consumption expenditure saw the largest increase, at 11.8%. This is because US residents who have been vaccinated against Covid-19 have started traveling and engaging in activities after regional restrictions were eased.

Meanwhile, several factors are considered to hinder economic growth until the end of the year. For example, the spread of the Delta variant, supply chain disruptions, labor shortages, and a sluggish property market.

Action Economics Chief Economist Mike Englund estimates US annual economic growth at 6.1%, as quoted by CNBC. He believes The Fed's prediction of 6.8-7.3% is too high.

Furthermore, the United States experienced year-on-year inflation of 5.4% in June 2021, the highest in 13 years. High inflation also acted as one of the inhibitors of economic growth in the second quarter of this year.