The U.S. economy fell short of economists' second-quarter forecasts as real gross domestic product increased at an annual rate of 6.5%, considerably less than the 8.4% Dow Jones estimate, but still slightly better than the 6.3% gain in the first quarter.

The economic growth is still above pre-pandemic levels, though economists warn of slower growth in the coming months. Consumer spending rose 2.8%, which offset declines in other parts of the economy. 

"The economy has come roaring back faster than people expected,” Jay Bryson, chief economist at Wells Fargo Corporate and Investment Bank, told the Wall Street Journal.

Output was boosted by several factors, which included an increase in personal expenditures, which surged by 11.8%. Growth was also driven by state and local spending.

“The second-quarter GDP report is stronger than it looks, with measures excluding trade and inventory drag far outpacing the 6.5% headline gain...More ambitious marks like pre-pandemic trend, or closing the gap to some estimates of potential, is in reach within a few quarters," Bloomberg economists noted.

In early July, the Bureau of Labor Statistics reported that total nonfarm payroll employment rose by 850,000 in June, while the unemployment rate was at 5.9%.