04/29/2021 | News release | Distributed by Public on 04/29/2021 08:05
Real gross domestic product 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. 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. For more details, including source data, see the Technical Note and Federal Recovery Programs and BEA Statistics.
Personal income and saving
Real disposable personal income (DPI)-personal income adjusted for taxes and inflation-increased 61.3 percent in the first quarter after decreasing 10.1 percent in the fourth quarter of 2020.
The increase in current-dollar DPI primarily reflected an increase in government social benefits related to pandemic relief programs, notably direct economic impact payments to households established by the Coronavirus Response and Relief Supplemental Appropriations Act and the American Rescue Plan Act. Personal saving as a percent of DPI was 21.0 percent in the first quarter, compared with 13.0 percent in the fourth quarter of 2020.
Prices
Prices of goods and services purchased by U.S. residents increased 3.8 percent in the first quarter of 2021 after increasing 1.7 percent in the fourth quarter of 2020.
For more information, read the full release.