GDP up 6.5% and Personal Consumption Expenditures Up

The economy is still moving forward but not at the break speed that many analysis first expected. We are a big economy so an increase of 6.5% GDP isn't the worst thing that could happen. As our infrastructure changes we may see higher growth rates as innovation improves and new efficiencies are found through communication and transport improves (i.e. rail, Delta County Shipping, data infrastructure, space exploration, etc...)

Here are a few highlights.....

Personal Income Up a Little:

"Personal income increased $26.1 billion (0.1 percent) in June according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) decreased $2.6 billion (less than 0.1 percent) and personal consumption expenditures (PCE) increased $155.4 billion (1.0 percent)." BEA, 2021

Gross Domestic Product (GDP)

GDP is the primary way that government determines economic growth. It isn't a perfect system and doesn't reflect digital GDP that well. However, it is the imperfect tools we use today and likely will be adjusted when more data comes "online" from a global perspective. 

GDP is a big word that economists throw around each time the conversation gets interesting. "Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country’s economic health" (Investopedia).

International Monetary Fund (IMF) has a great description of GDP and how it functions in society. They use a number of different ways of looking at it. See IMF GDP.

• GDP = C + G + I + NX.

You can gain some insight from a video on GDP by CNBC. See GDPCNBC

The Bureau of Economic Analysis uses 13 indicators of GDP. See US Economic Analysis  

US Commerce Department Twitter

Press Release from the U.S. Commerce Department below(I put in some highlights of some things that spark my interest.)...

Statement from U.S. Secretary of Commerce Gina M. Raimondo on Q1 2021 GDP Advance Estimate

Today, the Department of Commerce’s Bureau of Economic Analysis (BEA) released the advance estimate for gross domestic product (GDP) for the first quarter of 2021, finding that real gross domestic product increased at a 6.4-percent annual rate.  Personal consumption expenditures increased by a robust 10.7-percent annual rate, while business investment in equipment and intellectual property products continued to grow steadily.

U.S. Secretary of Commerce Gina M. Raimondo issued the following statement in response:

"Today’s GDP report is encouraging. President Biden took swift, decisive action in his first 100 days to vaccinate Americans, deliver relief to families and businesses, and set the stage for a sustainable economic expansion for all Americans.

The President entered office with a plan to Build Back Better, and as he said last night, America is moving forward, but we can’t stop now.  A simple bounce-back is not sufficient.  We need the strategic investments included in the American Jobs Plan and American Families Plan to not only return to where we were prior to the pandemic, but to build our country and our economy back better. We need big, bold actions that invest in our families, our workforce, and our infrastructure that position America to out-compete on the global stage for decades to come."

BUREAUS AND OFFICES

Bureau of Economic Analysis