Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The US Bureau of Economic Analysis has estimated that the US economy grew by 6.4pc in Q1 2021, signaling a strong quarterly recovery in the country’s gross domestic product (GDP) from 4.3pc in Q4 2020.


The bureau indicated in a statement on Apr 29 that the increase in personal consumption expenses (PCE), which included purchases of vehicles and automotive parts, and increased expenditure on food services and accommodations were a result of the Paycheck Protection Program by the federal government that lifted individual incomes during the quarter. 


As a result, personal income across the country increased by 59pc or $2.4tn in Q1 against a decrease of $351.4bn or 6.9pc in the preceding quarter. 


Moreover, the increasing rate of vaccination allowed more businesses to open during the quarter and lifted the jobs data as well. The number of unemployment claims inched down to 553,000 last week according to the latest data from the US Labor Department. This compares to 566,000 unemployment claims reported by the Labor Bureau in the week ending April 17.


In terms of trade, exports from the US decreased while imports rose during the quarter. 

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