U.S. GDP marks record growth at 33.1% in third quarter

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Biden issued a statement Thursday reminding voters that the economy is still in a "deep hole" and that the recovery, which benefited mostly "those at the top", is slowing.

Heading into the 2020 campaign, Mr. Trump expected the booming economy to be the centerpiece of his re-election effort, with the economy one of the few issues where he has consistently outpaced Mr. Biden in polling.

The U.S. economy grew at a record pace in the third quarter as the government injected more than $3 trillion worth of pandemic relief which fueled consumer spending, but the deep scars from the COVID-19 recession could take a year or more to heal.

"The recovery that began in the third quarter has been robust enough that coming back from the bottom appears notably less daunting than it did just a few months back", Ellen Zentner, chief US economist at Morgan Stanley said in a report.

The third quarter economic growth was powered by a record 40.7% annual increase in consumer spending.

The report, which follows the second quarter's worst GDP drop in history, exceeded the 32% growth rate expectation in a Dow Jones survey as lockdowns lifted and stores and restaurants reopened.

The US economic system staged a record-setting rebound from the coronavirus disaster within the third quarter, the feds stated Thursday - however there's nonetheless a protracted strategy to go earlier than the nation makes a full restoration.

Real GDP reflects increases in personal consumption expenditures, private inventory investment, exports, nonresidential fixed investment, and residential fixed investment that were partly offset by decreases in federal government spending and state and local government spending, BEA explains.

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The government's estimate of the third-quarter jump in the gross domestic product - the total output of goods and services in the United States - was the biggest such increase on records dating to 1947. Consumer spending enjoyed a sharp bounce-back before easing to a more moderate growth rate.

It is unclear, though, how much of an impact the upbeat figures may have on the election, especially given that more than 76 million Americans have already cast their vote.

Behind that shortfall is a large number of jobless Americans whose struggles may factor into their decision whether to support incumbent Trump or former Vice President Biden in the presidential election.

A separate report from the Labor Department on Thursday showed initial claims for state unemployment benefits fell 40,000 to a seasonally adjusted 751,000 in the week ending october 24.

"The demand for home buying remains super strong, even with a slight monthly pullback in September, and we're still likely to end the year with more homes sold overall in 2020 than in 2019", said NAR Chief Economist Lawrence Yun.

Speaker of the House Nancy Pelosi, D-California, said the credit for the GDP growth was due to the CARES Act, not Trump. "Without more stimulus, there will not be as much of a foundation to rebuild on, once the crisis passes". Confirmed viral cases are surging.

Democratic presidential nominee Joe Biden dismissed the US economy's record-shattering growth as not "nearly enough" to get the country out of a "deep hole" on Thursday.

Bryson said growth in the fourth quarter is set to "slow sharply".

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