BEA News: GDP, 1st quarter 2021 (second estimate); corporate profits, 1st quarter 2021 (preliminary estimate)

The U.S. Bureau of Economic Analysis (BEA) has issued the following news release today:

Real gross domestic product (GDP) increased at an annual rate of 6.4 percent in the first quarter of 2021, reflecting the continued economic recovery, reopening of establishments, and continued government response related to the COVID-19 pandemic. The increase was the same rate as the “advance” estimate released in April. In the first quarter, government assistance payments, such as direct economic impact payments, expanded unemployment benefits, and Paycheck Protection Program loans were distributed to households and businesses through the Coronavirus Response and Relief Supplemental Appropriations Act and the American Rescue Plan Act. In the fourth quarter of 2020, real GDP increased 4.3 percent.

Profits decreased less than 0.1 percent in the first quarter after decreasing 1.4 percent at a quarterly rate in the fourth quarter. Corporate profits increased 12.7 percent in the first quarter from one year ago. Profits were impacted by provisions from the Paycheck Protection Program.