US real GDP rises at annual rate of 2.1% in Q3 2021: BEA

30 Nov '21

2 min read

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US real gross domestic product (GDP) increased at an annual rate of 2.1 per cent in the third quarter (Q3) of 2021, according to the second estimate released by the Bureau of Economic Analysis (BEA). In the second quarter (Q2), it increased by 6.7 per cent. In the advance estimate issued in October, the increase in real GDP was 2 per cent.

The increase in third quarter GDP reflected the continued economic impact of the COVID-19 pandemic and the update primarily reflects upward revisions to personal consumption expenditures and private inventory investment, BEA said in a release.

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.

A resurgence of COVID-19 cases resulted in new restrictions and delays in the reopening of establishments in some parts of the country. Government assistance payments in the form of forgivable loans to businesses, grants to state and local governments, and social benefits to households all decreased.

The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the third quarter because the impacts are generally embedded in source data and cannot be separately identified.

Fibre2Fashion News Desk (DS)

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