The unrestrained U.S. economy expanded at a record 33.1% annual pace in the third quarter as it was recovering from the global pandemic. Despite the historic rebound this summer, a fresh viral outbreak threatens to affect the economy’s growth.
The gross domestic product, the official scorecard of the economy, bounced back after receiving trillions of dollars in government aid. Most of the aid has now expired and coronavirus cases are back on the rise, resulting in many Americans hunkering down again. The economy might suffer if states decide to reinstate shutdown protocols.
President Trump is using the GDP recovery in hopes to receive more votes in the presidential election, but Democrats don’t agree. The Dems argue that the economy isn’t doing well and that a new approach is needed to help the GDP’s recovery.
The 33.1% annual pace showed a record rebound in consumer spending and revival in business investment. Consumer spending increased by 40.7% and business investment in equipment jumped 70.1%. The total value of stockpiled goods jumped by $286 billion in the third quarter.
The business investment rebound is a good indicator that shows companies are optimistic about the future.
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