Bureau of Economic Analysis Reports Real Gross Domestic Product at an Annual Rate of 33.1% in Q3

According to the ‘advance’ estimate released by the Bureau of Economic Analysis, real gross domestic product (GDP) increased at an annual rate of 33.1% in Q3 of 2020. In Q2 the real GDP decreased by -31.4%. The increase in the Q3 GDP reflected continued efforts to reopen businesses and resume activities that were postponed or restricted due to COVID-19. The price index for gross domestic purchases increased 3.4% in Q3, in contrast to a decrease of -1.4% in Q2. The personal consumption expenditures (PCE) price index increased 3.7%, in contrast to a decrease of 1.6% in Q2. Excluding food and energy prices, the PCE price index increased 3.5%, in contrast to a decrease of -0.8% in Q2. Current-dollar personal income decreased $540.6 billion in Q3, in contrast to an increase of $1.45 trillion in Q2. Disposable personal income decreased $636.7 billion, or -13.2% in Q3, in contrast to an increase of $1.60 trillion, or 44.3%, in Q2. Finally, there is personal saving which were at $2.78 trillion in Q3, compared to $4.71 trillion in Q2. The personal saving rate—personal saving as a percentage of disposable personal income—was 15.8% in Q3, compared with 25.7% in Q2.