Real GDP for Q1 2021 Reported at 6.4% in “Third” Estimate

The Bureau of Economic Analysis (BEA) released today (6-24-21) its “third” estimate of real gross domestic product (GDP) for Q1 if 2021, reporting it was at an annual rate of 6.4%. This is the same level as in the previously reported “advance” and “second” estimates. According to the BEA, the “third” estimate of GDP released today is based on more complete source data than were available for the “second” estimate issued last month. Upward revisions to nonresidential fixed investment, private inventory investment, and exports were offset by an upward revision to imports, which are a subtraction in the calculation of GDP. In Q4 of 2020 the real GDP increased 4.3%. According to the BEA, the increase in real GDP in Q1 of 2021 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.