U.S. Economy Continues to Rebound

Economists say the U.S. economy rebounded more quickly from the pandemic compared to some other countries. Some analysts say part of the reason is stimulus, low interest rates, and vaccinations against COVID-19. However, backups in the supply chain have hampered production, compelling manufacturers to turn to imports.

The Commerce Department says the goods trade deficit increased 3.5% to $91.2 billion last month. Imports of goods increased 1.5% to $236.7 billion.

The global shortage of semiconductors has decreased the production of motor vehicles and household appliances. During the pandemic, Americans spent more on goods than services, but now that many Americans are vaccinated, the service sector is picking up again.

Analysts say the economy likely grew to 8.5% last quarter from the year before.

That has raised optimism among some economists that fewer goods will be imported in the coming months and allow the trade gap to shrink. However, fear of the Delta variant could again limit demand for services and boost sales in goods.

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