Economic Data Alert! Real gross domestic product (GDP) increased at an annual rate of 6.6 percent in the second quarter of 2021. The increase was revised up 0.1 percentage point from the 'advance' estimate released in July.
In the first quarter of 2021, real GDP increased 6.3 percent.
Real gross domestic product (GDP) increased at an annual rate of 6.6 percent in the second quarter of 2021, reflecting the continued economic recovery, reopening of establishments, and continued government response related to the COVID-19 pandemic. The increase was revised up 0.1 percentage point from the 'advance' estimate released in July. In the second quarter, government assistance payments in the form of loans to businesses and grants to state and local governments increased, while social benefits to households, such as the direct economic impact payments, declined. In the first quarter of 2021, real GDP increased 6.3 percent.
Corporate profits from current production Profits increased 9.2 percent at a quarterly rate in the second quarter after increasing 5.1 percent in the first quarter. Corporate profits increased 43.4 percent in the second quarter from one year ago.
https://www.bea.gov/news/2021/gross-domestic-product-2nd-quarter-2021-second-estimate-corporate-profits-2nd-quarter
PCE is the most manipulated and conservative estimate for inflation the government relies on...
The increase in PCE reflected increases in services (led by food services and accommodations) and goods (led by "other" nondurable goods, notably pharmaceutical products, as well as clothing and footwear). The increase in nonresidential fixed investment reflected increases in intellectual property products (led by research and development as well as software) and equipment (led by transportation equipment). 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.
Current dollar GDP increased 13.2 percent at an annual rate, or $693.2 billion, in the second quarter to a level of $22.73 trillion. In the first quarter, GDP increased 10.9 percent, or $560.6 billion. More information on the source data that underlie the estimates is available in the Key Source Data and Assumptions file on BEAโs website.
The price index for gross domestic purchases increased 5.8 percent in the second quarter, an upward revision of 0.1 percentage point. The PCE price index increased 6.5 percent, an upward revision of 0.1 percentage point. Excluding food and energy prices, the PCE price index increased 6.1 percent, unrevised from the advance estimate.
Gross Domestic Income and Corporate Profits
Real gross domestic income (GDI) increased 1.6 percent in the second quarter, compared with an increase of 6.3 percent (revised) in the first quarter. The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 4.0 percent in the second quarter, compared with an increase of 6.3 percent in the first quarter.
Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) increased $234.5 billion in the second quarter, compared with an increase of $123.9 billion in the first quarter.
Profits of domestic financial corporations increased $53.7 billion in the second quarter, compared with an increase of $1.3 billion in the first quarter. Profits of domestic nonfinancial corporations increased $169.8 billion, compared with an increase of $133.2 billion. Rest-of-the-world profits increased $11.0 billion, in contrast to a decrease of $10.6 billion. In the second quarter, receipts increased $31.3 billion, and payments increased $20.3 billion.
