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U.S. economy grew at 6.5% rate last quarter, missing expectations

Jul. 29, 2021 12:37PM EST
Dan Ackermann

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.

This story is breaking news. Please check back for updates

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IEA analysis charts "narrow" pathway to Paris climate goal

The pathway for transforming global energy systems to reach net-zero emissions by 2050 is "narrow but still achievable" and demands unprecedented acceleration away from fossil fuels, an International Energy Agency report published Tuesday concludes.

Why it matters: It provides detailed analysis and estimates of what's needed for a good shot at limiting temperature rise to 1.5°C above preindustrial levels — the Paris Agreement benchmark for avoiding some of the most damaging effects of climate change.

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Why infrastructure talks are setting climate advocates up for an anxious summer

Infrastructure talks between the White House and Congress have entered a phase that's making climate advocates extremely nervous.

Why it matters: Environmental groups and even some Democratic lawmakers are increasingly vocal with their fears that the White House will jettison central components of President Biden's climate plan during the talks, which could cause the U.S. to fall short of its new emissions targets.

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