U.S. GDP grew at 33.1% annualized rate in third quarter, feds report
By: Just The News
S E E D E D C O N T E N T
In the third quarter, the GDP grew at an annualized rate of 33.1%, according to a new report from the U.S. Department of Commerce released Thursday morning.
Economists expected approximately 32% GDP growth, making up ground lost during a sharp 31.4% contraction that occurred during the second quarter, following the initial pandemic-induced economic shutdown. The 33.1% annualized expansion pace was slightly higher than the widely predicted figure of 32%.
Mark Zandi, the chief economist at Moody's Analytics, told CNBC that he thinks "most of that growth came at the end of the second quarter, coming into the third quarter. May, June, July were very strong months. That's when businesses were reopening," he said. "August was okay, September kind of went flat into October. I think the economy is moving very sideways."
Economists are looking to the fourth quarter with some anxiety, wondering if a second wave of coronavirus infections could lead to a materially worse November and December. An increased spread rate and reinforced shutdown policies could encourage consumers to refrain from shopping and visiting restaurants, all while Congress and the White House have failed to deliver a new coronavirus relief package and likely won't until at least the beginning of the new year.
Another significant factor in the positive third quarter GDP numbers was strong consumer spending in late spring and early summer months. Consumption habits were aided by the enhanced unemployment given to workers through the end of July, when it ran out. Economists believe the repackaging of enhanced unemployment that took place in August, combined with no congressional stimulus package, and a possible flare up of coronavirus numbers, could negatively impact fourth quarter spending habits.
Article is LOCKED by author/seeder
Tags
Who is online
116 visitors
Good news for most of us!
Oh happy day! Now we can afford nicer funerals!
Dump all Trumps 2020!
Oh yes, if Joe Biden wins on Tuesday Church bells will ring, all the pandemic deaths will end, no more will be infected, the New York Times will stop reporting on new cases, the schools will open, blue states will open and we will all live in harmony again/s
caused by impotent leadership in the oval office from day 1. where do you think that money came from to stabilize the US economy? wait till you see the 4th quarter numbers. 229K dead americans by the end of the day. buh bye trump.
Oh, they will be bad. Will a president Biden end up owning them?
229K dead americans by the end of the day.
I notice you didn't capitalize Americans. Readers, please note.
Vic is confused, he doesn't under stand that the fourth quarter will still be under Trump since Biden doesn't step into the job until January.
It's almost like he is not that familiar with the American election process.
It doesn't work that way, not for any president. If he's there, he owns it, just like the pandemic.
The only reason the GDP grew at a "record" rate is because it fell at a record rate the quarter before.
It's nice to see it rebound but it is not an achievement of the Trump administration.
Ahh, So that also explains the Obama recovery.
So sharp retractions are followed by explosive growth, unless Obama is president.
You beat me to it!
Back in a few.
CLOSED UNTIL THEN