The US economy grew by 6.4% q/q annualised in Q1 2021
The US economic recovery gained momentum at the start of this year. Bolstered by reopening the economy and substantial government support, real GDP increased at a seasonally adjusted annual rate of 6.4% q/q in Q1 2021, according to the advance estimates, rising from 4.3% q/q in Q4 2020. On an unadjusted basis, real GDP increased for the first time in four quarters, by 0.4% y/y.
GDP growth was underpinned by personal consumption expenditure rising at a seasonally-adjusted annual rate of 10.7% q/q (and an unadjusted 1.6% y/y), government consumption expenditures and gross investment by 6.3% q/q (1.5% y/y), and gross private domestic investment by 10.1% q/q (2.9% y/y), with growth in nonresidential investment of 9.9% q/q and residential fixed investment of 10.8% q/q. Inventory building and net exports were both drags on economic growth.
For extensive analysis on the US Economy, download the CEIC US Economy in a Snapshot Q2 2021 Report.