GDP Shows 6.4% Growth in Q1’s Early Estimate

U.S. gross domestic product (GDP) rose by 6.4% in the first quarter of 2021 on an annualized basis, according to the advanced estimate from the Bureau of Economic Analysis (BEA). The gain marks the second-fastest pace of growth since Q2 2003 and was exceeded only by the pandemic-reopening-fueled burst of Q3 in 2020. This growth follows the 4.3% real GDP increase seen in Q4 2020.

Economic activity in the U.S. took off to start 2021 due to continued recovery following widespread vaccination efforts, another round of federal direct economic impact payments and expanded unemployment benefits. The boost in real GDP in the first quarter reflected increases in personal consumption expenditures, residential and nonresidential fixed investment, federal government stimulus, and state and local government spending, which were partly offset by decreases in private inventory investment and exports.

David Schollaert

David Schollaert is a senior analyst for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. Based in CRU’s Pittsburgh office, David can be reached at david@steelmarketupdate.com or 724-720-1008.

David Schollaert

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