US real gross domestic product (GDP) increased at an annual rate of 6.5 per cent in the second quarter (Q2) of 2021, according to the advance estimate released by the country’s Bureau of Economic Analysis (BEA). In the first quarter, real GDP increased 6.3 per cent. The second estimate for Q2, based on more complete data, will be released on August 26.
The increase in real GDP in the second quarter reflects increases in personal consumption expenditures (PCE), non-residential 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, BEA said on its website.US real gross domestic product (GDP) increased at an annual rate of 6.5 per cent in the second quarter (Q2) of 2021, according to the advance estimate released by the country's Bureau of Economic Analysis (BEA). In the first quarter, real GDP increased 6.3 per cent. The second estimate for Q2, based on more complete data, will be released on August 26.#
Imports, which are a subtraction in the calculation of GDP, increased.
The increase in PCE reflects increases in services—led by food services and accommodations—and goods—led by other non-durable goods, notably pharmaceutical products.
The increase in non-residential fixed investment reflects increases in equipment (led by transportation equipment) and intellectual property products (led by research and development).
The rise in exports reflects an increase in goods (led by non-automotive capital goods) and services (led by travel), BEA said.
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 non-defense spending on intermediate goods and services.
Current-dollar GDP increased by 13 per cent at an annual rate, or $684.4 billion, in the second quarter to a level of $22.72 trillion. In the first quarter, current-dollar GDP increased by 10.9 per cent, or $560.6 billion.
The price index for gross domestic purchases increased by 5.7 per cent in Q2 compared with a rise of 3.9 per cent in Q1. The PCE price index increased by 6.4 per cent compared with an increase of 3.8 per cent in Q1.
Fibre2Fashion News Desk (DS)
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