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The U.S. economy has returned to pre-pandemic levels as gross domestic product (GDP) grew 1.6 percent in the second quarter, The New York Times reports.
Compared to the second quarter of 2020, GDP grew 6.5 percent. Housing accounted for roughly 17 percent of overall GDP.
The return of GDP to levels seen before the coronavirus first impacted the global economy happened exactly one year after the worst quarterly contraction on record, according to the Times. After the last recession in 2009, it took nearly two years for the metric to completely rebound.
“The good news is, this is all occurring much more rapidly than after the financial crisis,” says Diane Swonk, chief economist for the accounting firm Grant Thornton. “The bad news is, the pain was much worse.”
Notably, consumer spending grew 2.8 percent in the second quarter.
Data from the U.S. Census Bureau shows home improvement sales stood at $45 billion in June, down roughly 2.8 percent from May spending levels. However, overall home improvement spending is roughly 18 percent higher than one year ago.
Some analysts caution the economic rebound may see future obstacles. Many retail sectors are struggling with supply chain disruption, and residential construction fell 2.5 percent in the second quarter as professional builders dealt with supply and labor shortages. Additionally, consumer prices grew 1.6 percent, the Times reports.
