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Shoppers walk near a sign posting safety guidelines in South Coast Plaza on the day it reopened after closures due to the COVID-19 pandemic on August 31, 2020 in Costa Mesa, California.
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The U.S. economy grew at a record 33.1%, identical to the initial October estimate, reflecting a sharp rebound in economy activity over the summer as economic restrictions aimed at stopping the spread of COVID-19 were relaxed, the Commerce Department said Thursday.
Economists surveyed by MarketWatch expected growth to accelerate to a 33.5% annual rate. Using more complete source data, the government found that consumer spending was slightly lower than previously thought, as was government spending. This was offset by upward revisions to business investment, residential investment and exports.
The data show a strong rebound in the July-September period following the end of the lockdown in March and April from the coronavirus pandemic. Federal Reserve officials and private-sector economists agree the economy will slow from this record pace of GDP growth in the October-December quarter, but how much of a slowdown is being debated. Some economists are worried about a double-dip recession, while others think the economy is resilient. The Q4 GDP data won’t be released until the end of January.
