New data reported on Aug. 19 showed a more positive outlook for the United States economy, following forecasts that were initially lowered to anticipate the COVID-19 Delta variant’s impact.
The Commerce Department published the latest Quarterly Services Survey (QSS) which showed a 4 percent growth of the services sector in the second quarter from the first quarter.
The QSS report showed that leisure and hospitality sectors led the service industry’s growth.
The added data from the QSS report indicated that the U.S. economy is growing much faster than the initial 6.5 percent full-year prediction for 2021.
Analysts initially expected the services sector to have weakened due to added lockdown measures, citing inhibited supply chains and a restricted hospitality sector.
“The impact of the Delta variant on growth and inflation is proving to be somewhat larger than we expected,” economists from the Goldman Sachs Group wrote prior to the QSS report.
Economists have revised their forecasts, predicting a 7 percent growth for 2021.
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