U.S. Economy Grew at the Fastest Pace Ever in the Third Quarter
New York, N.Y. (PPD) — The Bureau of Economic Analysis (BEA) reported the second estimate for third quarter (Q3) gross domestic product (GDP) held at a historic 33.1% on an annualized basis. Due to mitigation efforts to slow the spread of coronavirus (COVID-19), real GDP fell -32.4% in Q2 2020.
Forecasts for the “advance” estimate ranged from a low of 20.0% to a high of 36.0%. The consensus forecast was 30.9%. Forecasts for the second estimate ranged from a low of 32.9% to a high of 33.6%. The consensus forecast was 33.1%.
Increases in nonresidential fixed investment, residential investment, and exports offset 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 but offset.
Real gross domestic income (GDI) rose 25.5% in Q3, after declining 32.6% (revised) in Q2. The average of real GDP and real GDI — a supplemental measure of U.S. economic activity that equally weights GDP and GDI — rose 29.2% in the quarter after falling 32.0% (revised).