The Bureau of Economic Analysis reported today that the Gross Domestic Product (GDP) saw the opposite from its July report where GDP was down 33 percent, this time the GDP increased 33 percent thanks to businesses reopening and activities resuming that were postponed or restricted by COVID19.
The increase in real GDP reflected increases in personal consumption expenditures (PCE), private inventory investment, exports, nonresidential fixed investment, and residential fixed investment that were partly offset by decreases in federal government spending (reflecting fewer fees paid to administer the Paycheck Protection Program loans) and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased (table 2).
The increase in PCE reflected increases in services (led by health care as well as food services and accommodations) and goods (led by motor vehicles and parts as well as clothing and footwear). The increase in private inventory investment primarily reflected an increase in retail trade (led by motor vehicle dealers). The increase in exports primarily reflected an increase in goods (led by automotive vehicles, engines, and parts as well as capital goods). The increase in nonresidential fixed investment primarily reflected an increase in equipment (led by transportation equipment). The increase in residential fixed investment primarily reflected an increase in brokers’ commissions and other ownership transfer costs.
The weekly unemployment claims reported by the United States Department Of Labor also saw its lowest numbers yet today, with claims at 751,000, insured unemployment rate at 5.8, and insured number at 7,756,000, all at their lowest since the start of the pandemic.