By Natalie DeCoste

The U.S. gross domestic product (GDP) has pushed past the economic hardship spurred by the coronavirus pandemic but failed to meet economists’ expectations.

The U.S.’s GDP for the second fiscal quarter rose 6.5% on an annualized basis. The figure was slightly better than the 6.3% gain in the GDP posted in the first quarter of the year.

The growth in the second quarter can be attributed to business re-openings and government aid. These boosts to the economy are expected to slow in the coming months with the onset of COVID-19 variants and materials and labor disruptions.

“The increase in real GDP in the second quarter reflected increases in personal consumption expenditures (PCE), nonresidential fixed investment, exports, and state and local government spending that were partly offset by decreases in private inventory investment, residential fixed investment, and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased,” said the Bureau of Economic Analysis‘ (BEA) report on the GDP.

The PCE growth reflected increases in services that were led by food services and accommodations as well as “other nondurable goods” like primarily pharmaceutical products, according to the BEA’s report. There were also increases in nonresidential fixed investment, led by transportation equipment, and in exports, led by nonautomotive capital goods.

Even with the added boosts, the GDP came up well short of what economists had predicted. Dow Jones’ estimated the expected growth was 8.4%, making the slightly over 6% gains a disappointing result.

Other issues for the economy in the latest report showed that gross private domestic investment fell by 3.5%, caused by private inventory and residential investment declines. Rising imports, which subtract from GDP, and a 5% decline in the rate of federal government spending also hindered growth.

Personal income figures also had a less than successful quarter. According to the BEA, current-dollar personal income decreased $1.32 trillion in the second quarter, or 22%, compared to an increase of $2.33 trillion, or 56.8%, in the first quarter. The BEA suggested that the decrease was caused by a decrease in government social benefits related to pandemic relief programs. Disposable personal income also fell $1.42 trillion, or 26.1%, compared to an increase in the first quarter.

The GDP still managed to put up growth beyond pre-pandemic levels. This is a milestone that underscores the pace of the recovery that began last summer.

“The economy has come roaring back faster than people expected,” said Jay Bryson, chief economist at Wells Fargo Corporate and Investment Bank.