As the economy continues on its path to recovery, US GDP has been adjusted to increase 6.5% in the second quarter of 2021. Although this marks some acceleration compared with the start of the year, this brings the economy some stability following the volatility exhibited in 2020. As vaccination rates have continued to increase, state governments have lifted restrictions on various business activities, driving economic growth.

However, the emergence and intensity of the Delta variant has given way to some setbacks, with some cities reimposing mask mandates and restrictions on business operating activities, which has been particularly disruptive for retail industries and food and accommodation services. Additionally, federal unemployment benefits are set to expire in September 2021, which will likely contribute to some additional financial pressures on households in the coming months, particularly in the wake of uncertainty of the new COVID-19 (coronavirus) variant and rising inflation.