Data Alert! Real gross domestic product (GDP) increased at an annual rate of 6.5 percent in the second quarter of 2021, according to the "advance" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 6.3 percent
Real gross domestic productย (GDP) increased at an annual rate of 6.5 percent in the second quarter of 2021, according to the "advance" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 6.3 percent (revised).
The GDP estimate released today is based on source data that are incomplete or subject to further revision by the source agency (see "Source Data for the Advance Estimate" on page 3). The "second" estimate for the second quarter, based on more complete data, will be released on August 26, 2021.
The increase in PCE reflected increases in services (led by food services and accommodations) and goods (led by "other" nondurable goods, notably pharmaceutical products). The increase in nonresidential fixed investment reflected increases in equipment (led by transportation equipment) and intellectual property products (led by research and development). The increase in exports reflected an increase in goods (led by nonautomotive capital goods) and services (led by travel). The decrease in private inventory investment was led by a decrease in retail trade inventories.The decrease in federal government spending primarily reflected a decrease in nondefense spending on intermediate goods and services In the second quarter, nondefense services decreased as the processing and administration of Paycheck Protection Program (PPP) loan applications by banks on behalf of the federal government declined.
Sorry for unorthodox posting mobile today.
I find it interesting they call out the retail inventories issue. Inventory investment can't occur without inventory and retailers across the board are being hit.
This definitely isn't the case of anyone sitting on capacity to spike prices (unless you count the transportation network not paying labor what it would take to meet current demand?).
However, continued hiccups in the transportation network are going to have even greater impact on inventory shortages. For example and anecdotally, my local McDonald's was out of ketchup yesterday.