Shrugging aside rising inflation and interest rates, the U.S. economy grew at an extremely strong rate of 3.2% annual solid pace from July to September, the government reported Thursday in a healthy upgrade from its earlier estimate from 3rd quarter growth.
The rise in gross domestic product and The economy’s output in goods and services marked a growth after consecutive drops in the Jan-March and April-June period.
Still, many economic experts expect the economy to slow down and slip into recession next year due to higher interest rates being levied by the authorities to combat inflation that earlier this year reached heights that had not been noticed since the 1980s.
During the Third quarter, growth was solid exports and healthy consumer spending.
Investment in housing plunged yearly at 27.1%, hammered by higher mortgage rates.
In its previous estimate of 3rd quarter growth issued on Nov 30, the commerce department has pegged July – Sept growth at an annual rate of 2.9%. Behind the upgrade to Thursday’s 3.2% was a more substantial rise in spending by a consumer. Revised up to a 2.3% yearly rate from 1.7% in nov estimate.
Inflation which had not been a severe problem for almost 40 years, returned in 2021. It was set off by a strong recovery from the coronavirus recession of 2020 brought up by government stimulus. The Authorities were slow to recognize the severity of the inflation, and it only started rising after the march.
- Published By Team Nation Press News