2020-10-01 13:20:00
U.S. GDP DOWN 31.4%
U.S. BEA - September 30, 2020 - Real gross domestic product (GDP) decreased at an annual rate of 31.4 percent in the second quarter of 2020 (table 1), according to the "third" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP decreased 5.0 percent.
The "third" estimate of GDP released today is based on more complete source data than were available for the "second" estimate issued last month. In the second estimate, the decrease in real GDP was 31.7 percent. The upward revision with the third estimate primarily reflected an upward revision to personal consumption expenditures (PCE) that was partly offset by downward revisions to exports and to nonresidential fixed investment (see "Updates to GDP" on page 3).
The decrease in real GDP reflected decreases in PCE, exports, nonresidential fixed investment, private inventory investment, residential fixed investment, and state and local government spending that were partly offset by an increase in federal government spending. Imports, which are a subtraction in the calculation of GDP, decreased (table 2).
The decrease in PCE reflected decreases in services (led by health care) and goods (led by clothing and footwear). The decrease in exports primarily reflected a decrease in goods (led by capital goods). The decrease in nonresidential fixed investment primarily reflected a decrease in equipment (led by transportation equipment). The decrease in private inventory investment primarily reflected a decrease in retail (led by motor vehicle dealers). The decrease in residential investment primarily reflected decreases in new single-family housing.
Current-dollar GDP decreased 32.8 percent, or $2.04 trillion, in the second quarter to a level of $19.52 trillion. In the first quarter, GDP decreased 3.4 percent, or $186.3 billion (tables 1 and 3). More information on the source data that underlie the estimates is available in the "Key Source Data and Assumptions" file on BEA’s website.
The price index for gross domestic purchases decreased 1.4 percent in the second quarter, in contrast to an increase of 1.4 percent in the first quarter (table 4). The PCE price index decreased 1.6 percent, in contrast to an increase of 1.3 percent. Excluding food and energy prices, the PCE price index decreased 0.8 percent, in contrast to an increase of 1.6 percent.
Gross Domestic Income and Corporate Profits
Real gross domestic income (GDI) decreased 33.5 percent in the second quarter, compared with a decrease of 2.5 percent 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, decreased 32.5 percent in the second quarter, compared with a decrease of 3.7 percent in the first quarter (table 1).
Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) decreased $208.9 billion in the second quarter, compared with a decrease of $276.2 billion in the first quarter (table 10).
Profits of domestic financial corporations increased $26.5 billion in the second quarter, in contrast to a decrease of $42.2 billion in the first quarter. Profits of domestic nonfinancial corporations decreased $145.9 billion, compared with a decrease of $190.5 billion. Rest-of-the-world profits decreased $89.5 billion, compared with a decrease of $43.5 billion. In the second quarter, receipts decreased $134.5 billion, and payments decreased $45.0 billion.
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Earlier:
2020, September, 22, 13:15:00
U.S. DEBT WILL TWICE
Without changes to tax and spending laws, the U.S. federal debt held by the public will reach 195% of GDP by 2050,
2020, September, 21, 11:55:00
U.S. CARRENT ACCOUNT DEFICIT $170.5 BLN
The U.S. current account deficit, which reflects the combined balances on trade in goods and services and income flows between U.S. residents and residents of other countries, widened by $59.0 billion, or 52.9 percent, to $170.5 billion in the second quarter of 2020
2020, September, 17, 16:45:00
U.S. GDP WILL DOWN 3.7%
Federal Reserve Board and Federal Open Market Committee release economic projections from the September 15-16 FOMC meeting
2020, September, 17, 16:40:00
U.S. FEDERAL FUNDS RATE 0.0 - 0.25%
The Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent
2020, September, 16, 11:25:00
U.S. INDUSTRIAL PRODUCTION UP
U.S. industrial production rose 0.4 percent in August for its fourth consecutive monthly increase.
2020, September, 15, 16:15:00
U.S. FOR COVID: $1.5 TLN
With less than two months to go before the November election, there is growing anxiety among lawmakers about the inability of Congress and President Donald Trump’s White House to agree on a package to deliver relief to millions of Americans and an economy reeling from the coronavirus pandemic.
2020, September, 7, 11:20:00
U.S. EMPLOYMENT UP BY 1.4 MLN
U.S. total nonfarm payroll employment rose by 1.4 million in August
