Question

Discuss and examine the 3rd quarter GDP in 2020. one paragraph

Answer 1

The growth in real GDP represented rises in spending on personal consumption, investment in private inventory, exports, fixed non-residential investment and fixed residential investment, which were partially offset by declines in federal government spending (reflecting less fees charged to handle debts under the Paycheck Insurance Program) and government and local government spending. Imports that are subtracted from the GDP calculation have risen,

Increases in services (led by health care as well as food services and accommodation) and products (led by motor vehicles and materials, as well as clothes and footwear) is reflected in the rise in PCE. The rise in investment in private inventory mainly reflected an improvement in retail trading (led by dealers in motor vehicles). The increase in exports mainly reflected an increase in the number of products (driven by automotive automobiles, engines and components, as well as by capital goods). The growth in fixed non-residential investment largely represented an improvement in equipment.

In the third quarter, current dollar GDP rose by 38.0 percent, or $1.64 trillion, to a level of $21.16 trillion. GDP decreased 32.8 percent, or $2.04 trillion, in the second quarter.

In the third quarter, the price index for gross domestic sales rose by 3.4 percent , compared to a decline of 1.4 percent in the second quarter. In comparison to a fall of 1.6 percent, the PCE price index rose 3.7 percent. The PCE price index rose 3.5 percent, minus food and energy costs, as opposed to a decline of 0.8 percent.
In comparison to a rise of $1.45 trillion in the second quarter, current dollar personal income fell by $540.6 billion in the third quarter. The fall in personal income was more than compensated for by a fall in personal current transfer receipts (notably, pandemic relief programmes-related government social benefits) that was partially offset by rises in salary and income of owners