Real US gross domestic product (GDP) increased at an annual rate of 2.3 per cent in the third quarter (Q3) of 2021, according to the third estimate released by the Bureau of Economic Analysis (BEA). In the second quarter, real GDP increased by 6.7 per cent. The increase in third quarter GDP reflected the continued economic impact of the COVID-19 pandemic.

In the second estimate, the real GDP rise was 2.1 per cent. The update primarily reflects upward revisions to personal consumption expenditures (PCE) and private inventory investment that were partly offset by a downward revision to exports.Imports, which are a subtraction in the calculation of GDP, were revised down.

The increase in real GDP in the third quarter reflected increases in private inventory investment, PCE, state and local government spending, and non-residential fixed investment that were partly offset by decreases in exports, residential fixed investment, and federal government spending.

Real US gross domestic product (GDP) increased at an annual rate of 2.3 per cent in the third quarter (Q3) of 2021, according to the third estimate released by the Bureau of Economic Analysis (BEA). In the second quarter, real GDP increased by 6.7 per cent. The increase in third quarter GDP reflected the continued economic impact of the COVID-19 pandemic.

The deceleration in real GDP in the third quarter was more than accounted for by a slowdown in PCE. From the second quarter to the third quarter, spending for goods turned down (led by motor vehicles and parts) and services decelerated (led by food services and accommodations).

The price index for gross domestic purchases increased 5.6 per cent in the third quarter, compared with an increase of 5.8 per cent in the second. The PCE price index increased by 5.3 per cent, compared with an increase of 6.5 per cent. Excluding food and energy prices, the PCE price index increased by 4.6 per cent, compared with an increase of 6.1 per cent.

Fibre2Fashion News Desk (DS)