Numbers: According to the latest data released by the Commerce Department on Wednesday, the US economy expanded at an annual rate of 2.3% in the third quarter, up from the previous estimate of 2.1%. Economists polled by The Wall Street Journal predicted that gross domestic product would remain uncorrected in the third quarter.
The average growth rate in the first half was 6.5%. The economy slowed in the third quarter as a result of the delta variant of coronavirus that causes COVI-19.
Important details: Private consumption in the second quarter has been revised up from the previous forecast of 2.1% to an annual increase of 2.3%. This was the slowest since the depth of the pandemic in the same quarter of 2020.
Big picture: Currently, economists predict that growth will recover in the fourth quarter. Household spending is expected to skyrocket. Fourth quarter GDP data will not be released until the end of January.
The big open question is how much the economy will slow down from the last few weeks of December to the first quarter as the Omicron variant spreads rapidly. The answer remains fantastic, but keep in mind that economists are cautious and the United States hasn’t done a great job of eradicating delta variants.
Market reaction: stock
Set to open a little higher on Wednesday In a week of volatile trading.
U.S. GDP grew at a revised rate of 2.3% in the third quarter
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