US economy expands 6.4% in Q1

By Ovunc Kutlu

ANKARA (A) - The US economy expanded by an annual rate of 6.4% in the first quarter, according to the Commerce Department's second reading of the data on Thursday, which was unchanged from the first reading.

Analysts expected the gross domestic product (GDP) to rise 6.1%, while real GDP increased 4.3% in the fourth quarter of 2020.

After the US economy shrank by a record 31.4% in the second quarter last year amid the coronavirus pandemic, GDP climbed 33.4% in the third quarter. The world's largest economy contracted 3.5% in 2020 – its worst drop since 1946.

"Upward revisions to consumer spending and nonresidential fixed investment were offset by downward revisions to exports and private inventory investment," said the agency.

It noted that government assistance payments, including economic impact payments, expanded unemployment benefits and Paycheck Protection Program loans, were distributed in the first quarter to households and businesses through the Coronavirus Response and Relief Supplemental Appropriations Act and the American Rescue Plan Act.