U.S. Records Increases in GDP in Third Quarter 2020

U.S. real gross domestic product (GDP) rose at an annual rate of 33.4% in the third quarter of 2020, according to the Bureau of Economic Analysis press release. The rise was an improvement from the second quarter, where real GDP fell by 31.4%.

• Current dollar GDP rose by 38.3% annual rate, or $1.65 trillion, in the third quarter to $21.17 trillion, up from a decline of 32.8% in the second quarter.
• The price index for gross domestic purchases rose 3.3% in the third quarter, up from a decline of 1.4% in the second quarter.
• Real gross domestic income (GDI) rose 25.8% in the third quarter, up from a fall of 32.6% in the second quarter.
• Profits from current production rose by $499.6 billion in the third quarter, up from a fall of $208.9 billion in the second quarter.
• Profits of domestic financial corporations increased by $12.1 billion in the third quarter, up from a rise of $26.5 billion in the second quarter.
• Profits of domestic nonfinancial corporations rose by $436.2 billion, up from a decrease of $145.9 billion in the second quarter.
• Rest-of-the-world profits rose by $51.3 billion, up from a decrease of $89.5 billion in the second quarter.
• The increase in third-quarter GDP reflected continued efforts to reopen business and activities postponed or restricted due to COVID-19.

U.S stocks are mixed as the dollar gains. SPY is down 0.052%, QQQ: NASDAQ is up 0.18%, EURUSD is down 0.27%