On April 30, the US Department of Commerce released the latest report on the initial value of GDP in the first quarter, showing that the initial value of GDP in the first quarter increased by 6.4% at an annualized quarterly rate, which was lower than the expected growth of 6.9% and the previous growth of 4.3%.
The data also showed that the initial quarterly rate of real personal consumption expenditure in the United States in the first quarter was 10.7%, the highest level since the third quarter of last year; The growth rate in the last quarter was 2.3%; Spending on goods increased by 23.6%, while spending on services only increased by 4.6%, showing weak recovery.
In addition, US government spending and investment grew by 6.3% in the first quarter, with federal spending up 13.9% and state and local spending up 1.7%.
In response, novel coronavirus pneumonia, a US economic analysis Bureau, said the US GDP grew by 6.4% in the first quarter of 2021, reflecting the sustained economic recovery, reopening of businesses and the government’s continued response to the new crown pneumonia epidemic.
Through novel coronavirus pneumonia relief and relief relief act and the United States rescue plan act, the government issued funds to families and enterprises in the first quarter of this year, such as direct economic impact payments, expanded unemployment relief and wage protection scheme loans.
It also said that the growth in real GDP in the first quarter reflected increases in personal consumption expenditure (PCE), non residential fixed investment, federal government spending, residential fixed investment, and state and local government spending, partially offset by decreases in private inventory investment and exports.
Since the beginning of this year, U.S. economic activity has boomed, as extensive vaccination and government spending have helped the U.S. economy return almost to its pre epidemic level, the U.S. consumer news and business channel wrote. The GDP of the United States increased by 6.4% in the first quarter, the second fastest growth since the third quarter of 2003. The economy reopened in the third quarter of last year and reached the best growth rate.
According to the latest data, the U.S. economy has made great progress since the adoption of epidemic blockade measures in 2020. In the second quarter of 2020, the number of unemployed people in the United States exceeded 22 million, and GDP fell by an unprecedented 31.4%. Then it rebounded 33.4% in the third quarter.
However, the Bureau of economic research has yet to announce that the recession is over because gross domestic product in dollar terms has not yet exceeded its previous peak.
Although about 14 million people have returned to work since the economy reopened, the Federal Reserve estimates that there are 8.4 million fewer jobs than before the outbreak. The unemployment rate fell from 14.7% during the epidemic to 6%, but it is still far higher than the 3.5% recorded in February 2020.
Forexlive pointed out that the latest data reflect that the economic fundamentals are even stronger than the overall situation. Trade and inventories were a big drag this quarter, but consumer spending and investment bode well for the future. Market reaction to the data was moderate.
According to the data released by the U.S. Department of labor, 553000 people applied for unemployment benefits for the first time in the week ending April 24, which is expected to be 540000, compared with 547000 previously. In the week to April 17, 3.66 million people applied for unemployment benefits in the United States, which is expected to be 3.59 million, up from 3.674 million.
Some commentators pointed out that 553000 Americans applied for unemployment benefits for the first time last week. This is another low since the outbreak, but higher than the agency’s estimate of 528000. Efforts to revive the job market still need to be driven by monetary policy.
Forbes said the number of first-time jobless claims in the United States has been steadily declining in recent weeks, indicating that the economic recovery is strengthening and the labor market is beginning to recover after the damage caused by a large-scale epidemic.