Q1 GDP Rises 6.4%
April 29, 2021
Real gross domestic product (GDP) increased at an annual rate of 6.4 percent in the first quarter of 2021 (table 1), according to the "advance" estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2020, real GDP increased 4.3 percent.
The GDP estimate released today is based on source data that are incomplete or subject to further revision by the source agency (see "Source Data for the Advance Estimate" on page 3). The "second" estimate for the first quarter, based on more complete data, will be released on May 27, 2021.
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, which are a subtraction in the calculation of GDP, increased (table 2).
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.