Real U.S. gross domestic product increased 6.5 percent in 2Q 2021, according to an advanced estimate from the Bureau of Economic Analysis. That growth is slightly higher than the 6.3 percent in Q1 2021.
According to the U.S. Bureau of Economic Analysis, the GDP growth reflects increases in personal consumption expenditures and goods, nonresidential fixed investments, exports and decreases in state and local government partially offset by decreases in private inventory investments, residential fixed investments and federal government spending. Also, current-dollar GDP increased 13 percent at an annual rate or $684.4 billion to $22.72 trillion. The price index for gross domestic purchases increased 5.7 percent, compared with a 3.9 percent increase the previous quarter. The personal consumption expenditures price index increased 6.4 percent.
Richard Baier, president and CEO of the Nebraska Bankers Association, said Nebraska is “blessed” that the statewide economy remains strong with low unemployment levels. He noted the largest issue delaying economic progress is the lack of labor force, an issue he said could partially be solved by having those whose employment status changed during the pandemic return to work. Another challenge Baier sees is the automation of frontline positions at a much more rapid pace than expected and the smaller population of millennials and Generation Z than the retiring baby boomer workforce who dominated the workforce over the previous decades.
Personal income statistics for 2Q 2021 were also released:
- Current-dollar personal income decreased $1.32 trillion or 22 percent in 2Q 2021. That is in stark contrast to the 56.8 percent increase in 1Q 2021. The decrease is caused by a reduction in government social benefits related to pandemic relief programs.
- Disposable personal income decreased $1.42 trillion or 26.1 percent. Real disposable personal income decreased 30.6 percent.
- Personal outlays increased $680.8 billion, mainly caused by an increase in personal consumption expenditures for services.
- Personal savings were $1.97 trillion, compared with $4.07 trillion in 1Q 2021. The personal saving rate — personal saving as a percentage of disposable personal income — was 10.9 percent, compared to 20.8 percent in 1Q 2021.