GDP hits brakes in Q3, slowest growth since second quarter of 2020

Filed under: News |

Daily News

View All News

October 28, 2021

Growth in the US real gross domestic product continued in the third quarter but at the slowest rate since the pandemic-hit second quarter of 2020, the US Bureau of Economic Analysis reported today. Separately, initial jobless claims declined to a new post-pandemic low.

GDP increased at an annual rate of 2.0% in the third quarter, the Bureau of Economic Analysis announced. That compares to growth of 6.7% in the second of this year and marks the slowest growth since the second quarter of 2020 when GDP fell 31.2%.

GDP had grown since then, rising 33.8% in the third quarter of last year before rising 4.5% in the fourth quarter and 6.3% in the first quarter.

“The deceleration in real GDP in the third quarter was more than accounted for by a slowdown in [personal consumption expenditures],” according to the bureau. “From the second quarter to the third quarter, spending for goods turned down (led by motor vehicles and parts) and services decelerated (led by food services and accommodations).”

CNN noted the “sugar rush” of Covid stimulus checks faded, but reported third-quarter growth was still lower than the 2.7% that economists had predicted.

Looking back two years ago, GDP growth was 2.8% in the third quarter of 2019.

Jobless claims

Initial jobless claims fell by 10,000 in the week ended Oct. 23 to a seasonally adjusted level of 281,000. It was the lowest level for initial claims since March 14, 2020, when they stood at 256,000.

The four-week moving average of claims fell by 20,750 last week to a total of 299,250. It too was at a post-pandemic low. In comparison, the four-week moving average of claims was at 225,500 in the week ended March 14, 2020.

List your business in the premium web directory for free This website is listed under Human Resources Directory