GDP Rose 2.0% in Q3
Washington, DC, October 28, 2021-Real gross domestic product (GDP) increased at an annual rate of 2.0% in Q3 2021, according to the advance estimate released by the Bureau of Economic Analysis.
In Q2, real GDP increased 6.7%, and in Q3 2020, GRP rose 33.8%.
The increase in real GDP in Q3 reflected increases in private inventory investment, personal consumption expenditures, state and local government spending, and nonresidential fixed investment that were partly offset by decreases in residential fixed investment, federal government spending, and exports. Imports, which are a subtraction in the calculation of GDP, increased.
"Such a pace marked a sharp slowdown from robust gains earlier this year. Gross domestic product grew at a historically fast annual rate of 6.3% in the first quarter and 6.7% in the second quarter as an infusion of government stimulus, widespread business reopenings and rising vaccination rates fueled spending, reports the Wall Street Journal.
"Those spending drivers faded from July to September. Two additional factors arose over the summer to damp third-quarter growth: a surge in virus cases and deepening supply bottlenecks.
"The Commerce Department’s third-quarter GDP estimate released Thursday said consumer spending rose at an annual rate of 1.6% in the third quarter, a sharp slowdown from a 12% increase in the prior quarter. That reflected weakness in spending on long-lasting goods whose availability was limited by supply issues.