The US economy grew by a robust annualized 6.4 percent in the first quarter of 2021, following a 4.3 percent expansion in the previous three-month period and slightly ahead market expectations of 6.1 percent, the advance estimate showed. The bounce back comes with stimulus payments and reopening activity catalyzed by the COVID vaccines.
The US economy grew by a robust annualized 6.4 percent in the first quarter of 2021, following a 4.3 percent expansion in the previous three-month period and slightly ahead market expectations of 6.1 percent, the advance estimate showed. The bounce back comes with stimulus payments and reopening activity catalyzed by the COVID vaccines.
USA Advance Q1 2021 GDP highlights
The Q1 GDP shows economy back in robust action, the question remains is it powerful enough to keep the economy on a form footing, ovecome debt buildups and potential inflation.
- Economic output increasing at a 6.4% annualized rate consensus 6.1%
- 10.7% increase in personal consumption expenditures
- 6.3% increase in government spending.
Increases in personal consumption expenditures (PCE), nonresidential fixed investment, federal government spending, residential fixed investment, and state and local government spending were partly offset by decreases in private inventory investment and exports
- Real final sales of domestic product, which exclude the change in private inventories, surged 9.2%.
- The GDP Price Deflator was up 4.1% (consensus 2.6%).
GDP Deflator in the United States increased to 115.51 points in the first quarter of 2021 from 114.37 points in the fourth quarter of 2020.
- Personal consumption expenditures, up 10.7%, contributed 7.02 percentage points to the change in real GDP.
- Gross private domestic investment declined 5.0%, dragged down almost entirely by the change in inventories, subtracted 0.87 percentage points from the change in real GDP.
- Exports declined 1.1% and imports increased 5.7%.
- Net exports subtracted 0.87 percentage points from the change in real GDP.
- Government spending was up 6.3%, added 1.12 percentage points to the change in real GDP.
- The personal savings rate was 21.0% in the first quarter versus 13.0% in the fourth quarter.
Source:Bureau of Economic Analysis
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