The US economy has just broken a new record of GDP growth for the 3rd quarter of 2020:
U.S. GDP booms at 33.1% rate in Q3, better than expected https://t.co/TuW42O1Z7H
— CNBC (@CNBC) October 29, 2020
Coming off the worst quarter in history, the U.S. economy grew at its fastest pace ever in the third quarter as a nation battered by an unprecedented pandemic started to put itself back together.
Third-quarter gross domestic product, a measure of the total goods and services produced in the July-to-September period, expanded at a 33.1% annualized pace, the Commerce Department reported Thursday in its initial estimate for the period.
Markets reacted positively to the news, with Wall Street now looking at a flat to slightly positive open.
That came after a 31.4% plunge in the second quarter and was better than the 32% estimate from economists surveyed by Dow Jones. The previous post-World War II record was the 16.7% burst in the first quarter of 1950.
Increased consumption along with sold gains in business and residential investment as well as exports fueled the third-quarter rebound. Decreases in government spending following the expiration of the CARES Act rescue funding subtracted from GDP.
The powerful growth pace came after governments across the country shut down large swaths of activity in an effort to stem the spread of Covid-19, which the World Health Organization declared a pandemic on March 11.
More great economic news just in time for the election. I’m sure Trump will be touting this in his two rallies today, which we’ll bring you starting at 1:30PM.