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Home News REPORT: US Economy Grew 5.2% in Third Quarter

REPORT: US Economy Grew 5.2% in Third Quarter

REPORT: US Economy Grew 5.2% in Third Quarter

( – According to government data released on Wednesday, the third quarter saw the U.S. economy expand at an explosive 5.2% annual rate.

This was faster than the prior projection of 4.9 percent, which was far more than expected. This is a decade’s most rapid growth rate, excluding the pandemic recovery.

An increase in company investment and government spending is reflected in the upward revision. Both exports and consumer spending were revised lower.

This is the government’s official economic scorecard, or the second estimate of the gross domestic output.

The government expanded at an annual rate of 2.1 percent in the second quarter.

Compared to the initial projection of 4 percent, household spending increased at a pace of 3.6 percent.

Despite studies indicating that consumers feel negatively about the economy, consumer spending has been surprisingly strong.

Many economists believe people are being encouraged to spend because of the pandemic’s low unemployment rate and extra savings.

The rate of personal savings was adjusted from 3.8 percent to 4 percent. Following an upward revision, disposable personal income increased by 2.9%.

Real after-tax income increased by 0.1 percent when adjusted for inflation following a significant upward revision of 1.1 percentage points.

Business investment was revised up to a 1.3% gain following a previously reported loss due to firmer outlays for structures.

Additionally, housing was more substantial than first thought.

Unaffected by inflation, nominal GDP increased by an astounding 8.9 percent, revised from the prior estimate of 8.5 percent.

Another indicator of the economy’s expansion, inflation-adjusted gross domestic income, increased by a more moderate 1.5 percent.

According to some economists, the average of the GDP and GDI provides a more realistic picture of the status of the economy. The third quarter saw this grow at a rate of 3.3 percent.

The federal government’s spending increased at an annual pace of 7% from the initial forecast of 6.2%. The rate of increase in total government spending, which includes state and municipal spending, was 5.5%, as opposed to the previous estimate of 4.6%.

Most people agree that the economy slowed down in the fourth quarter. According to figures compiled by the Federal Reserve Bank of Atlanta’s GDPNOW, the economy is expected to increase by 2.1 percent in the fourth quarter.

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