https://www.bea.gov/news/2020/gross-domestic-product-third-quarter-2020-advance-estimate
Bureau of Economic Affairs
October 29, 2020
Gross Domestic Product, Third Quarter
2020 (Advance Estimate)
Real gross domestic product
(GDP) increased at an annual rate of
33.1 percent in the third quarter of
2020 (table 1), according to the
"advance" estimate released by the
Bureau of Economic Analysis. In the
second quarter, real GDP decreased 31.4
percent.
The GDP estimate released today is based
on source data that are incomplete or
subject to further revision by the
source agency (see "Source Data for the
Advance Estimate" on page 2). The
"second" estimate for the third quarter,
based on more complete data, will be
released on November 25, 2020.
Real GDP: Percent change from preceding quarter, Q3 2020 (Adv)
Chart showing Real GDP: Percent change
from preceding quarter
COVID-19 Impact on the Third-Quarter 2020 GDP Estimate
The increase in third quarter GDP reflected continued efforts to reopen businesses and resume activities that were postponed or restricted due to COVID-19. The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the third quarter of 2020 because the impacts are generally embedded in source data and cannot be separately identified. For more information, see the Technical Note.
The increase in real GDP
reflected increases in personal
consumption expenditures (PCE), private
inventory investment, exports,
nonresidential fixed investment, and
residential fixed investment that were
partly offset by decreases in federal
government spending (reflecting fewer
fees paid to administer the Paycheck
Protection Program loans) and state and
local government spending. Imports,
which are a subtraction in the
calculation of GDP, increased (table 2).
The increase in PCE reflected increases
in services (led by health care as well
as food services and accommodations) and
goods (led by motor vehicles and parts
as well as clothing and footwear). The
increase in private inventory investment
primarily reflected an increase in
retail trade (led by motor vehicle
dealers). The increase in exports
primarily reflected an increase in goods
(led by automotive vehicles, engines,
and parts as well as capital goods). The
increase in nonresidential fixed
investment primarily reflected an
increase in equipment (led by
transportation equipment). The increase
in residential fixed investment
primarily reflected an increase in
brokers' commissions and other ownership
transfer costs.
Current‑dollar GDP increased 38.0
percent, or $1.64 trillion, in the third
quarter to a level of $21.16 trillion.
In the second quarter, GDP decreased
32.8 percent, or $2.04 trillion (tables
1 and 3).
The price index for gross domestic
purchases increased 3.4 percent
in the third quarter, in contrast to a
decrease of 1.4 percent in the second
quarter (table 4). The PCE price
index increased 3.7 percent, in
contrast to a decrease of 1.6 percent.
Excluding food and energy prices, the
PCE price index increased 3.5 percent,
in contrast to a decrease of 0.8
percent.
Personal Income
Current-dollar personal income decreased
$540.6 billion in the third quarter, in
contrast to an increase of $1.45
trillion in the second quarter. The
decrease in personal income was more
than accounted for by a decrease in
personal current transfer receipts
(notably, government social benefits
related to pandemic relief programs)
that was partly offset by increases in
compensation and proprietors' income
(table 8). Additional information on
several factors impacting personal
income can be found in "Effects of
Selected Federal Pandemic Response
Programs on Personal Income."
Disposable personal income
decreased $636.7 billion, or 13.2
percent, in the third quarter, in
contrast to an increase of $1.60
trillion, or 44.3 percent, in the second
quarter. Real disposable personal
income decreased 16.3 percent, in
contrast to an increase of 46.6 percent.
Personal saving was $2.78
trillion in the third quarter, compared
with $4.71 trillion in the second
quarter. The personal saving rate—personal
saving as a percentage of disposable
personal income—was 15.8 percent in the
third quarter, compared with 25.7
percent in the second quarter.
Source Data for the Advance Estimate
Information on the source data and key
assumptions used in the advance estimate
is provided in a Technical Note that is
posted with the news release on BEA's
Web site. A detailed "Key Source Data
and Assumptions" file is also posted for
each release. For information on updates
to GDP, see the "Additional Information"
section that follows.
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Next release: November 25, 2020 at 8:30
A.M. EST
Gross Domestic Product (Second Estimate)
Corporate Profits (Preliminary Estimate)
Third Quarter 2020
Donald J. Trump for President, Inc.
Oct. 29, 2020
Trump campaign statement on 33.1% Q3 GDP growth
“This record economic growth is absolute validation of President Trump’s policies which create jobs and opportunities for Americans in every corner of the country. The President built the world’s best economy once and he’s rapidly doing it again, proving that cutting taxes and reducing regulations and red tape clear the way for American ingenuity and our entrepreneurial spirit to thrive. We have regained more than half of the jobs lost to the global pandemic in less than six months, while it took more than two years to regain half of job losses from a recession while Joe Biden was in charge. President Trump will continue to safely reopen the country, while Biden is the candidate of lockdowns, inviting another economic shutdown which would devastate working people and cause even more health problems above and beyond what the coronavirus has caused. Biden has been an economic disaster for nearly five decades in Washington, backing disastrous trade deals and putting China’s interests ahead of American workers. Biden’s plans for a $4 trillion tax increase and Green New Deal regulations on every person, business, building, and farm in the nation would kill this recovery while it’s already in full swing. For voters, the choice is simple: It’s a Trump boom versus a Biden depression.”