US GDP to grow by 9.5% in the second quarter – RBC

Previewing next week's key macroeconomic events in the US, economists at RBC Economics noted that they expect the US Bureau of Economic Analysis' initial estimate to show the US economy has expanded by 9.5% in the second quarter.

Key quotes

"As the economic reopening gets going, we expect US GDP to grow by 9.5% in Q2 driven by exceptionally strong consumer spending for the quarter. We look for US personal income to fall by 0.7% in June following a combined 14.8% drop in the prior two months as pandemic-related assistance continues to taper off."

"The Federal Reserve will likely maintain its policy rate at next week’s meeting. Markets will watch for any hints about plans to taper their asset purchases program."