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BEA Releases Third Estimate of Second Quarter 2021 Gross Domestic Product (GDP)

09.30.2021

COVID-19 Impact on the Second-Quarter 2021 GDP Estimate: The increase in second quarter GDP reflected the continued economic recovery, reopening of establishments, and continued government response related to the COVID-19 pandemic. In the second quarter, government assistance payments in the form of loans to businesses and grants to state and local governments increased, while social benefits to households, such as the direct economic impact payments, declined. The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the second quarter because the impacts are generally embedded in source data and cannot be separately
identified.
 
Real gross domestic product (GDP) increased at an annual rate of 6.7 percent in the second quarter of 2021, according to the "third" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 6.3 percent. In the second estimate, the increase in real GDP was 6.6 percent. Upward revisions to personal consumption expenditures (PCE), exports, and private inventory investment were partly offset by an upward revision to imports, which are a subtraction in the calculation of GDP. The increase in real GDP in the second quarter reflected increases in PCE, nonresidential fixed investment, exports, and state and local government spending that were partly offset by decreases in private inventory investment, residential fixed investment, and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.
 
The increase in PCE reflected increases in services (led by food services and accommodations) and goods (led by "other" nondurable goods, notably pharmaceutical products, as well as clothing and footwear). The increase in nonresidential fixed investment reflected increases in equipment (led by transportation equipment) and intellectual property products (led by software as well as research and development). The increase in exports reflected increases in goods (led by nonautomotive capital goods) and in services (led by travel). The decrease in private inventory investment was led by a decrease in retail trade inventories. The decrease in federal government spending primarily reflected a decrease in nondefense spending on intermediate goods and services. In the second quarter, nondefense services decreased as the processing and administration of Paycheck Protection Program (PPP) loan applications by banks on behalf of the federal government declined.
 
Updates to GDP
In the third estimate for the second quarter, real GDP increased 6.7 percent, an upward revision of 0.1 percentage point. The revision primarily reflected upward revisions to PCE, exports, private inventory investment, that were partly offset by an upward revision to imports and downward revisions to residential fixed investment, state and local government spending, and federal government spending.


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Consider attending NESCON 2021… October 4… 9:00 AM - 2:45 PM (eastern)… and it’s FREE this year!

08.27.2021


Jeff Carr will once again (more than 10 years now at NESCON) be presenting the conference keynote session at 9:00 AM.  The topic this year is:


In the presentation, Jeff will explain what is happening in the current economy and provide some ideas for adapting your supply chains to this economy.  Click on the topic above to learn more about the presentation.

This year’s annual New England Supply Chain Conference (NESCON 2021) will be delivered in a virtual format and is now open for FREE registrations (yes, it really is FREE this year!).  The conference has been reduced to a single day, with FIVE tremendous speakers.  Presenters and panelists are the top thinkers and advisors in today’s global manufacturing and distribution industries.  Topics will provide insights into:

  • The current economic state of the manufacturing and distribution industries
  • Future technologies that will be deployed across numerous global supply chain elements
  • How Adaptive S&OP will be used to manage in a volatile, uncertain, complex, chaotic and ambiguous world
  • How “work” will be redesigned around the speed of the customer

The conference begins at 9:00 AM (eastern) and continues until 2:45 PM.  There will be 1 opening keynote speaker + 3 technical speakers + 1 panel discussion (with moderator & 3 panelists) + a closing keynote speaker.   NESCON 2021 is sure to be a great day of relevant and useful supply chain information!


To register for this FREE event, click HERE:


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BEA Releases Second Estimate of Second Quarter 2021 Gross Domestic Product (GDP)

08.26.2021

TECHNICAL NOTE - COVID-19 Impact on the Second-Quarter 2021 GDP Estimate: The increase in second quarter GDP reflected the continued economic recovery, reopening of establishments, and continued government response related to the COVID-19 pandemic. In the second quarter, government assistance payments in the form of loans to businesses and grants to state and local governments increased, while social benefits to households, such as the direct economic impact payments, declined. The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the second quarter because the impacts are generally embedded in source data and cannot be separately identified.  
 
Real gross domestic product (GDP) increased at an annual rate of 6.6 percent in the second quarter of 2021, according to the "second" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 6.3 percent. The increase in real GDP in the second quarter reflected increases in personal consumption expenditures (PCE), nonresidential fixed investment, exports, and state and local government spending that were partly offset by decreases in private inventory investment, residential fixed investment, and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased. 
 
The increase in PCE reflected increases in services (led by food services and accommodations) and goods (led by "other" nondurable goods, notably pharmaceutical products, as well as clothing and footwear). The increase in nonresidential fixed investment reflected increases in intellectual property products (led by research and development as well as software) and equipment (led by transportation equipment). The increase in exports reflected an increase in goods (led by nonautomotive capital goods) and services
(led by travel). The decrease in private inventory investment was led by a decrease in retail trade inventories. The decrease in federal government spending primarily reflected a decrease in nondefense spending on intermediate goods and services. In the second quarter, nondefense services decreased as the processing and administration of Paycheck Protection Program (PPP) loan applications by banks on behalf of the federal government declined.
 
Updates to First-Quarter Estimates: In addition to presenting updated estimates for the second quarter, today's release presents revised estimates of first-quarter personal taxes, based on updated data from the Treasury Department’s Office of Tax Analysis. Real GDI increased 6.3 percent in the first quarter, the same rate as the previously published estimate.


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BEA Releases Advance Estimate of Second Quarter 2021 Gross Domestic Product (GDP)

07.29.2021

TECHNICAL NOTE - COVID-19 Impact on the Second-Quarter 2021 GDP Estimate: The increase in second quarter GDP reflected the continued economic recovery, reopening of establishments, and continued government response related to the COVID-19 pandemic. In the second quarter, government assistance payments in the form of loans to businesses and grants to state and local governments increased, while social benefits to households, such as the direct economic impact payments, declined. The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the second quarter because the impacts are generally embedded in source data and cannot be separately identified.
 
Real gross domestic product (GDP) increased at an annual rate of 6.5 percent in the second quarter of 2021, according to the "advance" estimate released by the Bureau of Economic Analysis. In the
first quarter, real GDP increased 6.3 percent (revised). The increase in real GDP in the second quarter reflected increases in personal consumption expenditures (PCE), nonresidential fixed investment, exports, and state and local government spending that were partly offset by decreases in private inventory investment, residential fixed investment, and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.
 
The increase in PCE reflected increases in services (led by food services and accommodations) and goods (led by "other" nondurable goods, notably pharmaceutical products). The increase in nonresidential fixed investment reflected increases in equipment (led by transportation equipment) and intellectual property products (led by research and development). The increase in exports reflected an increase in goods (led by nonautomotive capital goods) and services (led by travel). The decrease in private inventory investment was led by a decrease in retail trade inventories. The decrease in federal government spending primarily reflected a decrease in nondefense spending on intermediate goods and services. In the second quarter, nondefense services decreased as the processing and administration of Paycheck Protection Program (PPP) loan applications by banks on behalf of the federal government declined.
 
Update to the First Quarter of 2021: For the first quarter of 2021, real GDP is estimated to have increased 6.3 percent, 0.1 percentage point less than previously published. The revision primarily reflected downward revisions to federal government spending, state and local government spending, and exports that were partly offset by an upward revision to nonresidential fixed investment.


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BEA Releases Third (Final) Estimate of First Quarter 2021 Gross Domestic Product (GDP)

06.24.2021

Technical Note: COVID-19 Impact on the First-Quarter 2021 GDP Estimate

The increase in first quarter GDP reflected the continued economic recovery, reopening of establishments, and continued government response related to the COVID-19 pandemic. In the first quarter, government assistance payments, such as direct economic impact payments, expanded unemployment benefits, and Paycheck Protection Program loans, were distributed to households and businesses through the Coronavirus Response and Relief Supplemental Appropriations Act and the American Rescue Plan Act. The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the first quarter of 2021 because the impacts are generally embedded in source data and cannot be separately identified. For more information, see the Technical Note and Federal Recovery Program and BEA Statistics.

Real gross domestic product (GDP) increased at an annual rate of 6.4 percent in the first quarter of 2021, according to the "third" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 4.3 percent. The increase in real GDP in the first quarter reflected increases in personal consumption expenditures (PCE), nonresidential fixed investment, federal government spending, residential fixed investment, and state and local government spending that were partly offset by decreases in private inventory investment and exports. Imports increased.

The increase in PCE reflected increases in durable goods (led by motor vehicles and parts), nondurable goods (led by food and beverages), and services (led by food services and accommodations). The increase in nonresidential fixed investment reflected increases in equipment (led by information processing equipment) and intellectual property products (led by software) . The increase in federal government spending primarily reflected an increase in payments made to banks for processing and administering the Paycheck Protection Program loan applications as well as purchases of COVID-19 vaccines for distribution to the public. The decrease in private inventory investment primarily reflected a decrease in retail trade inventories (mainly by motor vehicles and parts dealers).

In the third estimate, the change in first-quarter real GDP was the same as in the second estimate. Upward revisions to nonresidential fixed investment, private inventory investment, exports, and PCE were offset by an upward revision to imports.


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BEA Releases First...

Real gross domestic product (GDP) decreased at an annual rate of 0.9 percent in the second quarter of 2022, according to the "advance" estimate released by the Bureau of Economic Analysis. In the first quarter,...


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