Washington [US], October 28 (ANI): The Real gross domestic product (GDP) of the US increased at an annual rate of 2.0 per cent in the third quarter of 2021, according to the "advance" estimate released by the Bureau of Economic Analysis.
In the second quarter, real GDP increased 6.7 per cent. The GDP estimate released today is based on source data that are incomplete or subject to further revision by the source agency, the US Bureau of Economic Analysis informed.
The "second" estimate for the third quarter, based on more complete data, will be released on November 24, 2021.
The increase in real GDP in the third quarter reflected increases in private inventory investment, personal consumption expenditures (PCE), state and local government spending, and nonresidential fixed investment that were partly offset by decreases in residential fixed investment, federal government spending, and exports. Imports, which are a subtraction in the calculation of GDP, increased.
The increase in private inventory investment reflected increases in wholesale trade (led by nondurable goods industries) and in retail trade (led by motor vehicles and parts dealers).
The increase in PCE reflected an increase in services that was partly offset by a decrease in goods. Within services, increases were widespread with the largest contributions coming from "other" services (mainly international travel), transportation services, and health care, the US Bureau of Economic Analysis said.
The decrease in goods primarily reflected a decrease in spending on motor vehicles and parts.
The increase in state and local government spending was led by employee compensation (notably, education). The increase in nonresidential fixed investment reflected an increase in intellectual property products (led by software) that was partly offset by decreases in structures and equipment.
The decrease in residential fixed investment primarily reflected decreases in improvements and in new single-family structures.
The decrease in federal government spending primarily reflected a decrease in nondefense spending on intermediate goods and services after the processing and administration of Paycheck Protection Program loan applications by banks on behalf of the federal government ended in the second quarter.
The decrease in exports reflected a decrease in goods that was partly offset by an increase in services. The increase in imports primarily reflected an increase in services (led by travel and transport).
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).
Current-dollar GDP increased 7.8 per cent at an annual rate, or USD 432.5 billion, in the third quarter to a level of USD 23.17 trillion. In the second quarter, GDP increased 13.4 per cent, or USD 702.8 billion. (ANI)