GDP Sees Year-End Uptick

Real GDP increased at an annual rate of 6.9% in the fourth quarter of 2021, according to the Bureau of Economic Analysis.
2021 fourth quarter GDP 7%

The Bureau of Economic Analysis reported that real gross domestic product increased at an annual rate of 6.9% in the fourth quarter of 2021, following an increase of 2.3% in the third quarter.

The fourth-quarter acceleration was led by an upturn in exports, as well as accelerations in inventory investment and consumer spending, the BEA said.

During the last three months of 2021, COVID-19 cases resulted in continued restrictions and disruptions in operations in some parts of the country.

“Government assistance payments in the form of forgivable loans to businesses, grants to state and local governments, and social benefits to households all decreased as provisions of several federal programs expired or tapered off,” the BEA said.

The increase in private inventory investment was led by retail and wholesale trade industries, while the decrease in federal government spending primarily reflected a decrease in defense spending on intermediate goods and services.

Current‑dollar GDP increased 14.3% at an annual rate, or $790.1 billion, in the fourth quarter to a level of $23.99 trillion. In the third quarter, GDP increased 8.4%, or $461.3 billion.

The price index for gross domestic purchases increased 6.9% in the fourth quarter, compared with an increase of 5.6% in the third quarter.

Overall, real GDP increased 5.7% in 2021, in contrast to a decrease of 3.4% in 2020.

Related Posts

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.