Due to supply chain turmoil and the increase in Covid-19 cases inhibiting spending and investment, the US’s economic growth slowed in the third quarter more than expected and fell to the lowest level since the economy began to recover from the epidemic.
The U.S. Department of Commerce’s preliminary estimates on Thursday showed that the gross domestic product in the third quarter grew at an annual rate of 2%, lower than the 6.7% growth rate in the second quarter.
The economic slowdown reflects a sharp slowdown in personal consumption, which grew by only 1.6% in the third quarter after a surge of 12% in the second quarter. Transportation bottlenecks, rising prices, and the spread of the delta strain of the coronavirus have all put pressure on spending on goods and services.
The median forecast of economists is a 2.6% GDP growth in the third quarter.
The latest data highlights that unprecedented supply chain pressures are suppressing the US economy. Due to the shortage of production merchants and the lack of necessary materials, it is difficult to meet the needs of consumers. Service companies are also facing similar pressures, and they are also exacerbated by the spread of the delta strain of the new crown virus.
Post time: Nov-01-2021