The U.S. Bureau of Economic Analysis (BEA) reported an increase of 6.4% in the real gross domestic products annual rate for the first quarter of 2021 in its third estimate. Projections for the fourth quarter of 2020 indicate a 4.3% GDP increase.
The “third” estimate of GDP released in June is based on more complete source data then were available for the "second" estimate issued in May, the agency said in the release.
“In the second estimate, the increase in real GDP was also 6.4%," the BEA said. "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.”
The BEA's most recent findings suggest that GDP and GDI averages combined amount to 7.0% growth. Current production profits were reported to have seen a $55.2 billion increase during the first quarter of 2021. Profits of domestic financial corporations decreased $6.4 billion in the same period, as profits of domestic non-financial corporations increased $72.1 billion. While receipts grew by $34.2 billion, payments increased $44.8 billion.
The increases result from personal consumption expenditures, federal and local government spending, and nonresidential fixed investment, while there were decreases in private inventory investments and exports. Current-dollar GDP growth increased 11.0%, equivalent to $566.8 billion, rising to a total of $22.06 trillion during the first quarter. During the fourth quarter of 2020, a 6.3% or $324.4 billion increase is projected for GDP, the BEA reports.
The bureau forms part of the Department of Commerce and is tasked with collecting source data, conducting research and analysis, developing and implementing estimation methodologies, and disseminating statistics to the public. It seeks to provide accurate and objective data about the performance of the nation's economy, including Puerto Rico and the other U.S. territories. National and local governments, as well as businesses of all sizes, rely on BEA's information as it relates to interest rates, trade policies, taxes, spending, hiring and investments.
The information provided by BEA is said by the agency to be nonpartisan, nonpolitical and neutral on policy. Its data is solely based on independent productions, and its published releases are usually scheduled, and accessible free of cost.
Other reports released by the agency include price indexes to provide its customers with an idea of goods and services influx changes over time, as well as trade numbers, direct investments, and personal income/saving pointers. The statistics were produced as a response to requests made from policymakers, businesses, economic developers and researchers. The information is intended to allow market players to properly identify strategies to meet local demands, as well as the industry’s overall economic development.