JEPI - Imports Powered By Stimulus Dragged On GDP

• Consumer spending accounted for 68% of GDP in Q3. The bounceback in spending was driven by stimulus and extra unemployment benefits.
• Negative "net exports" act as a reduction of GDP. In other words, the portion of the stimulus that was spent on consumer goods that were imported, or whose components were imported, stimulated the economies of China, Germany, Mexico, Bangladesh, etc., and acted as negative for the US economy.
• Consumption expenditures and investments by the federal government in Q3 fell by $22 billion from Q2, to $1.34 trillion. State and local government cut their consumption expenditures and investments by $17 billion to $2.0 trillion. This dragged on GDP.

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