US Q3 GDP up 33.4 per cent

The United States, US, economy expanded at a record 33.4 per cent annual pace from July through September, the Commerce Department has said, delivering the last of three estimates on the economy’s third-quarter performance. But it’s likely that a resurgence in coronavirus cases slowed growth sharply during the last three months of 2020.

The July to September growth spurt, upgraded slightly from Commerce’s previous estimate of 33.1 per cent, announced last month, marked a sharp recovery from the second-quarter’s 31.4 per cent drop, the worst in records dating back to 1947. The American economy went into freefall when the pandemic hit hard in mid-March.

Consumer spending surged at an annual rate of 41 per cent and private investment shot up by 86.3 per cent to lead the third-quarter rebound.

Employers slashed 22 million jobs in March and April, then began to steadily recall furloughed workers. But the US is still 9.8 million short of the jobs it had February, and hiring has slowed every month since June.

– AP