The US economy expanded by an annual rate of 6.5% in the second quarter, according to the Commerce Department’s advance estimate of a first reading of data on Thursday.

The figure was well below market expectations of 8.5%. Real gross domestic product (GDP) increased 6.3% in the first quarter, revised down 0.1 percentage point from the third and final reading of 6.4% last month.

The world’s largest economy contracted 31.4% in the second quarter of 2020, recovered 33.4% in the third quarter, but shrunk 3.5% overall in 2020, marking its worst annual drop since 1946, due to the coronavirus pandemic.

GDP, based on the current dollar, increased $684.4 billion in the April-June period to $22.72 trillion, it said, adding GDP rose $560.6 billion in the first quarter.

Personal income, on the other hand, decreased $1.32 trillion in the second quarter, or 22%, in contrast to an increase of a revised $2.33 trillion, or 56.8% in the first quarter.

“The PCE [Personal Consumption Expenditures] price index increased 6.4%, compared with an increase of 3.8% (revised). Excluding food and energy prices, the PCE price index increased 6.1%, compared with an increase of 2.7% (revised),” the statement said.

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