US Economy Grows 6.4 Percent in Q1

By The Associated Press
The Associated Press
The Associated Press
June 24, 2021 Updated: June 24, 2021

WASHINGTON—The U.S. economy grew at a solid 6.4 percent rate in the first three months of this year.

The Commerce Department said Thursday that growth in the gross domestic product, the country’s total output of goods and services, was unchanged from two previous estimates. It came after growth at a rate of 4.3 percent in the fourth quarter.

Thursday’s GDP report was the government’s third and final look at first-quarter GDP.

Consumer spending, which accounts for more than two-thirds of economic activity, grew at an annual rate of 11.4 percent in first three months of the year, up slightly from the 11.3 percent growth estimate made a month ago.

The spending gain reflected increases in goods purchases, led by auto sales, and gains in spending on services, led by food services and travel accommodations, two areas that have benefited from the reopening of the economy.

Business investment grew at a strong 11.7 percent rate, better than the previous estimate of 10.8 percent growth, while government spending increased at a 5.7 percent rate, slightly below last month’s estimate of a 5.8 percent gain.

The Associated Press
The Associated Press