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Special Report

GDP Research Brief

3Q 2021

Economy Returns to Pre-Recession Levels, Fueled by Stimulus

Growth remains steady. In the second quarter, the economy expanded 6.5 percent on an annualized basis. Gains would have been larger but supply-chain challenges and a labor shortage hamstrung improvement. Those issues should be transitory, however, as amplified federal unemployment benefits sunset in September. In May, 9.2 million jobs were available nationwide, the highest level on record. Additionally, the national eviction moratorium may expire soon, which could encourage more workers to reenter the workforce. Supply-chain difficulties should also abate as the world’s economy gains footing in the coming months. Most of the improvements were in personal expenditures as Americans spent stimulus funds across a wider range of spending alternatives.

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