economy likely gained steam in the second quarter, with the pace of growth probably the second fastest in 38 years, as massive government aid and vaccinations against COVID-19 fueled spending on travel-related services.

Even with the second quarter likely marking the peak in growth this cycle, the economic expansion was expected to remain solid for the remainder of this year.

"Consumers have plenty of income and wealth ammunition to support consumer spending, while business inventories remain lean and restocking efforts are poised to support business investment and overall GDP growth substantially in the second half of the year," said Sam Bullard, a senior economist at Wells Fargo in Charlotte, North Carolina.

The economy likely grew at an 8.5% annualized rate last quarter, according to a Reuters survey of economists.

That would be the second-fastest GDP growth pace since the second quarter of 1983.

The pick-up in services likely boosted consumer spending in the second quarter, with double-digit growth anticipated in the segment that accounts for more than two-thirds of the U.S.

While spending on goods remained strong, the pace likely slowed from earlier in the pandemic, when Americans were cooped up at home.

Though the fiscal boost is fading and COVID-19 cases are rising in states with lower vaccination rates, consumer spending will likely continue to grow.

The economy likely received a further boost from business investment, especially on equipment, as companies ramp up production, though spending on nonresidential structures such as mining exploration, shafts and wells probably declined for a seventh straight quarter.