The United States economy is bouncing back from the effects of Coronavirus. The Commerce Department released that gross domestic product surged by 33.1% in the third quarter. While the U.S. is still reeling from the lasting effects of the Coronavirus this upward trend is a clear sign the U.S. will be back on track soon.
The Commerce Department calculates the GDP on a quarter-over-quarter basis as if that level of growth were sustained for a full year; in times of huge swings up or down, it can exaggerate both the decline in growth and the subsequent rebound.
Because the third quarter is measured against the second quarter — a historically low baseline — any bounceback at all would appear huge. The U.S. economy came to a near standstill earlier this year to slow the spread of the novel coronavirus, which has infected more than 9 million Americans and killed over 227,000, the most in the world.
The third-quarter growth reported Thursday was spurred by a resurgence in consumer spending, which accounts for roughly two-thirds of the nation’s GDP, as states eased shutdown measures over the summer and employers rehired workers. Personal consumption increased by 40.7%, a record, last quarter. Business investment and housing also posted strong gains.
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