Wednesday, November 25, 2020

Q3 GDP Growth Unchanged at 33.1% Annual Rate

by Calculated Risk on 11/25/2020 08:44:00 AM

From the BEA: Gross Domestic Product, Third Quarter 2020 (Second Estimate); Corporate Profits, Third Quarter 2020 (Preliminary Estimate)

Real gross domestic product (GDP) increased at an annual rate of 33.1 percent in the third quarter of 2020, according to the "second" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP decreased 31.4 percent.

The GDP estimate released today is based on more complete source data than were available for the "advance" estimate issued last month that also showed an increase in real GDP of 33.1 percent. With the second estimate, upward revisions to nonresidential fixed investment, residential investment, and exports were offset by downward revisions to state and local government spending, private inventory investment, and personal consumption expenditures (PCE). Imports, which are a subtraction in the calculation of GDP, were revised up
emphasis added
Here is a Comparison of Second and Advance Estimates. PCE growth was revised down slightly to 40.6% from 40.7%. Residential investment was revised up from 59.3% to 62.3%. This was at the consensus forecast.