The U.S. economy grew at an annualized 6.5% rate last quarter, the government said Thursday.

Why it matters: It's a slower pace of growth than the 8.4% that forecasters expected, with the economy reopening, vaccines rolling out and government aid rolling in. But the economy has officially recovered from its pandemic-induced plunge.

The big picture: Economists say shortages held back economic growth.

• Supply wasn’t "able to fulfill all of the demand placed upon it with inventories continuing to be run down,” ING’s James Knightley wrote in a note.

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