US economic recovery picks up in Q1, powered by consumer spending

The US economy 6.4 percent in the first quarter on an annualized basis, powered by consumers who were reinvigorated by accelerating vaccinations, restriction rollbacks and generous virus relief aid from the federal government.

The United States economy grew 6.4 percent in the first three months of this year on an annualised basis, the US Bureau of Economic Analysis said on Thursday, as the economic recovery gained momentum, thanks to reinvigorated US consumers. The gain in gross domestic product (GDP), which measures the total output of goods and services within a specific period, was powered primarily by US consumers opening their wallets as  COVID-19 vaccination drives, virus restriction rollbacks, and generous virus relief aid from the federal government helped unleash pent-up demand. The growth was reflected in a data point known as personal consumption expenditures, which surged 10.7 percent in the first quarter on an annualised basis, as Americans splashed out on cars and trucks, as well as at restaurants, bars and hotels.