The US economy continued to recover in the first three months of the year as businesses reopened and the government spent heavily on Covid relief for citizens.
The economy grew at an annualised rate of 6.4% in the quarter, up from 4.3% in the final three months of 2020.
The US economy is rebounding faster than expected after contracting sharply in 2020.
But it is several years away from fully recovering from the pandemic recession.
Richard Flynn, UK managing director at financial services firm, Charles Schwab, said: “The US economy is accelerating quickly and remains on solid footing as we likely continue to move into a period of exceptional growth.
“We have experienced the sharpest economic ‘V’ in history – a deep recession and rapid recovery within just five quarters.”
The strong growth was partly down to easing anxiety over the pandemic as vaccines have been rolled out across the US, boosting domestic demand and allowing businesses such as restaurants and bars to reopen.
The Biden administration has also ushered through two additional rounds of Covid-19 relief money, the most recent of which saw unemployment subsidies extended and qualified households being sent one-off cheques for $1,400.
It has lifted confidence and helped consumer spending to hit a 14-month high in April. But there are questions over whether more moderate Democrats will continue to support President Biden’s ambitious economic agenda.
Since last may, the US has spent about $ 6 trillion on COVID relief and President Biden pitched some $ 4 trillion of new stimulus spending during his first joint speech to Congress on Wednesday.
