- Second-quarter GDP forecast accelerating at an 8.5% rate
- Consumer spending, business seen powering economy
- Growth probably peaked in the second quarter
- About 380,000 people likely filed jobless claims last week
WASHINGTON, July 29 (Reuters) – The U.S. economy likely gained steam in the second quarter, with the pace of growth probably the second fastest in 38 years, as massive government aid and vaccinations against COVID-19 fueled spending on travel-related services.
The anticipated acceleration in gross domestic product last quarter would lift the level of GDP above its peak in the fourth quarter of 2019. Even with the second quarter likely marking the peak in growth this cycle, the economic expansion was expected to remain solid for the remainder of this year.
A resurgence in COVID-19 infections, driven by the Delta variant of the coronavirus,…