US Economy Recovers by 33.1% in Third Quarter

The US economy recovered at a record pace of 33.1% in the July-September quarter, unchanged from the first estimate a month ago.

But the 2nd wave of Coronavirus is expected to slow growth sharply in the current quarter.

The Commerce Department reported that the country’s total output of goods and services remained the same as its first estimate.

Massive incomes in business investment, housing and exports were offset by low revisions to state and local government spending, business inventories and consumer spending.

The 33.1% gain was the largest quarterly gain on records going back to 1947 and surpassed the old mark of a 16.7% surge in 1950.

Still, even with the massive increase, the economy has not gained back all the outcome that was lost in the first six months of the year.

Economists are concerned that growth has slowed sharply in the current October-December and some fear that GDP could retreat negatively as in the first three months of next year.