US economy grows rapidly in Q1 as consumer spending drives recovery
The US economy grew by an annualised 6.4 per cent rate in the first three months of the year as the world’s largest economy roars back into life.
It was the second-highest figure for one quarter since 2003.
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Much of the recovery came from consumer spending, buoyed not just by reopening bars and restaurants but a huge pump-priming of the economy by both Presidents Trump and Biden.
Cheques for hundreds of dollars sent directly to ordinary Americans have stimulated demand.
The US is recovering from the ravages of the Covid-19 pandemic more quickly than many other western countries.
Almost 100m Americans have now been fully vaccinated, and a number of US states are looking to speed up their re-opening.
Texas, for instance, has allowed all businesses to be open at full capacity since March 10.
Richard Flynn, UK Managing Director at Charles Schwab, said: “The U.S. economy is accelerating quickly and remains on solid footing as we likely continue to move into a period of exceptional growth.
“We have experienced the sharpest economic “V” in history—a deep recession and rapid recovery within just five quarters,” he continued.