Real Gross Domestic Product for Q1 2020 Reported at 6.4% in “Second” Estimate

The Bureau of Economic Analysis (BEA) released today (5-27-21) its “second” estimate of real gross domestic product (GDP) for Q1 if 2020. BEA reports it at an annual rate of 6.4%. This is unchanged from their initial “advance” estimate released last month. In Q4 of 2020, the real GDP increased 4.3%. According to the BEA the increase in real GDP in Q1 of 2020 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.