Article archive / November 2020
Originally published: . Volume 11, No. 11. Source pages: 3.
Gross domestic product, the broadest measure of goods and services produced across the economy, increased by 33.1% on an annualized basis in the three-month period from July through September, the Commerce Department said in its first reading of the data last week.
The third quarter is measured against the second quarter, a historically low baseline. The U.S. economy came to a near standstill earlier this year to slow the spread of the novel coronavirus. The increase of 33% is historic set the White House.
Consumer spending accounts for two- thirds of GDP. The third quarter GDP growth reflects both the reopening of America’s businesses and the confidence of consumers to spend on goods and services once more. Consumer spending in the services sector alone accounted for nearly half of GDP growth in the third quarter, according to the Commerce Department experts. Greater third quarter spending on recreation, food, and accommodation services—sectors acutely impacted by lockdowns—alone accounted for one-fifth of total GDP growth in the third quarter, the announcement said.
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