U.S. GDP booms at 33.1% rate in Q3, better than expected

[yota691]

U.S. GDP booms at 33.1% rate in Q3, better than expected

PUBLISHED THU, OCT 29 20208:32 AM EDTUPDATED THU, OCT 29 20202:00 PM EDT

 

Jeff Cox@JEFF.COX.7528@JEFFCOXCNBCCOM

 

 

 

 

KEY POINTS

• U.S. GDP accelerated at a 33.1% annualized pace in the third quarter, the Commerce Department reported.
• That was better than the 32% estimate from a Dow Jones economist survey.
• A surge in business and residential investment along with stronger consumer activity helped the economy after its worst-ever quarter in Q2.

 

 

Coming off the worst quarter in history, the U.S. economy grew at its fastest pace ever in the third quarter as a nation battered by an unprecedented pandemic started to put itself back together, the Commerce Department reported Thursday.

Third-quarter gross domestic product, a measure of the total goods and services produced in the July-to-September period, expanded at a 33.1% annualized pace, according to the department’s initial estimate for the period.

 

The gain came after a 31.4% plunge in the second quarter and was better than the 32% estimate from economists surveyed by Dow Jones. The previous post-World War II record was the 16.7% burst in the first quarter of 1950.

Markets reacted positively to the news, with Wall Street erasing a loss at the open and turning mostly positive.

 

 

 

 

“It’s obviously good news that the economy bounced back in the third quarter,” said Eric Winograd, senior economist at AllianceBernstein. “There’s still a lot of work to do here and the pace of improvement ... is going to slow. The stimulus programs that provided much of the economic lift last quarter have expired or are expiring. Fiscal support is diminishing. That is part of the reason that the pace of growth is going to slow from here.”

Increased consumption along with sold gains in business and residential investment as well as exports fueled the third-quarter rebound. Decreases in government spending following the expiration of the CARES Act rescue funding subtracted from GDP.

The powerful growth pace came after states across the country shut down large swaths of activity in an effort to stem the spread of Covid-19, which the World Health Organization declared a pandemic on March 11.

 

Some 228,000 people have died in the U.S. from the virus, which has infected nearly 9 million in the country. The economy has been in a technical recession since February, as first-quarter growth declined at a 5% pace.

While the news on Q3 was good for the $21.2 trillion economy, the U.S. faces a tougher road ahead as coronavirus cases increase and worries grow over the health and economic impacts. Nearly half the 22 million jobs lost in March and April remain unfilled and the unemployment rate remains at 7.9%, more than double its pre-pandemic level as 12.6 million Americans are still out of work.

 

 

 

 

The GDP release came just five days before Election Day, which culminates a heated battle between President Donald Trump and his Democratic challenger, former Vice President Joe Biden. Trump has promised a return to the strong growth prior to the pandemic, while Biden has accused the Republican incumbent of taking a thriving economy into a ditch due to mismanagement of the virus.

“This is going to be seized upon by both ends of the political spectrum as either evidence of the strength of the post-lockdown economic rebound or a cursory warning that the gains could be short-lived,” said James McCann, senior global economist at Aberdeen Standard Investments. “The reality is that the GDP numbers demonstrate that the U.S. economy did indeed rebound strongly as lockdown measures were lifted.”

In a tweet, Trump noted the “Biggest and Best in the History of our Country” GDP number and said growth in 2021 will be “FANTASTIC!!!”

For his part, Biden noted that while the economy improved “visits to food banks haven’t slowed, and poverty has grown.”

Q3 growth came amid a resurgence in consumer activity, which accounts for 68% of GDP. Though most of the country remained in a cautious reopening, shoppers began returning to stores and the bar and restaurant industry entered the first tepid phase of resuming business despite restrictions on capacity.

Personal consumption increased 40.7%, while gross private domestic investment surged 83% amid a 59.3% increase on the residential side.

While the headline number “looks spectacular,” it still leaves growth 3.5% beneath its level at the end of 2019, according to Ian Shepherdson, chief economist at Pantheon Macroeconomics. Shepherdson expects the consumer and business investment rebound that led Q3 to “rise much less quickly” in the final three months of the year.

“Absent new stimulus, and with Covid infections spreading rapidly, we’re sticking to our 4% forecast for Q4 growth, though the margin of error here is large at this point,” he added.

Economic activity was strong in the real estate sector, and consumer and business executive surveys showed that confidence has remained high despite virus-related setbacks.

Personal income fell sharply for the quarter as transfer payments from coronavirus relief efforts dissipated. Personal savings also declined but remained strong at a 15.8% rate, down from the record 25.7% in Q2.

The annualized measure represents how much GDP would grow over the course of a year at the current pace from the same level a year ago. In terms of raw percent change from a year earlier, the economy contracted 9% in the second quarter and 2.9% in Q3.

[yota691]

The US economy grew by 33.1 percent year on year

 

 

- 10-29-2020 08:15 PM - Number of readings: 175

Today, Thursday, the US economy achieved record high growth in the third quarter of 2020 after the government pumped more than $ 3 trillion in stimulus packages.

The US Department of Commerce said in a preliminary report that gross domestic product grew 33.1 percent year on year in the past quarter, and this is the fastest pace since the US government began keeping records of that data in 1947, and this followed a historic contraction of 31.4 percent in the second quarter of this. The year.

[yota691]

 

[Shabibilicious]

Those numbers don't numb the pain of the millions of Americans who are still out of work because of Trump's abhorrent response to the pandemic.  Always a pleasure to watch Donald celebrate himself though.  

 

GO RV, then BV

[stt]

Shabs did you get your feelings hurt because the economy is getting better?Obama's economy was very similar to what we just went through 

[Shabibilicious]

4 minutes ago, stt said:

Shabs did you get your feelings hurt because the economy is getting better?Obama's economy was very similar to what we just went through 

 

My feelings are just fine.....just concerned for the unemployed Americans who are currently hurting as Trump does nothing for them or their families.  Obamas economy was similar, other than crashing and burning, it actually maintained a robust rise throughout his entire presidency, even when he had a pandemic to deal with, which he did well, only a fraction of the human losses currently happening daily, while Trump holds his super spreader rallies.

 

GO RV, then BV

[yota691]

24 minutes ago, stt said:

Shabs did you get your feelings hurt because the economy is getting better?

Your talking to the spin zone guy..Waste of time and effort. 

[Johnny Dinar]

Zero sum return... It's good to see things coming back. It is a recovery, but not new growth... We have a long way to go before we get back what we lost. JMHO

[Shabibilicious]

6 minutes ago, yota691 said:

Your talking to the spin zone guy..Waste of time and effort. 

 

It's only considered "spin" by those who refuse to see truth.

 

GO RV, then BV

[Pitcher]

22 minutes ago, yota691 said:

Your talking to the spin zone guy..Waste of time and effort. 

 

People who are full of hate.  Everyday they come to a Dinar Website to spew their hate.  

[Johnny Dinar]

5 minutes ago, Pitcher said:

 

People who are full of hate.  Everyday they come to a Dinar Website to spew their hate.  

 

Sad isn't it? They hate human rights. They hate the planet. They hate science. They hate truth... Yup sad indeed.

[Shabibilicious]

23 minutes ago, Pitcher said:

 

People who are full of hate.  Everyday they come to a Dinar Website to spew their hate.  

 

I fail to see how having compassion for out of work hurting Americans is hateful.....but go on, say what you say, as every Trump enabling supporter does.    And don't forget, this is the "Political Forum" of Dinar Vets.  It was created for the purpose of discussing politics, not the dinar investment, and it's not for the faint of heart politically speaking.

 

GO RV, then BV

[Shabibilicious]

32 minutes ago, Pitcher said:

 

People who are full of hate.  Everyday they come to a Dinar Website to spew their hate.  

 

Also, I regularly visit and read Adam's weekly chat....and thank him often.  At the end of the day, my Dinar investment is basically the same as it was the day I rushed into 5/3 bank 10 years ago to make my purchase before it was too late.   

 

GO RV, then BV

[Pitcher]

Johnny if you truly wanted to know and report the truth you would be talking about the Biden Crime Family.  You and your Dem friends are covering for one of the most corrupt group of American Politicians in the history of America.  You could care less for the truth when it comes to

 

The Russian Collusion Story

The Spying on the President 

The blatant abuse of power by the Dem Congress Impeaching Trump on a phony charge of Quid Pro Quo. A complete cover for the real criminal, Joe Biden

 

I could go on but Inhave better things to do.  

 

You dont care care for the truth you are here tp spew hate.  

[Shabibilicious]

3 minutes ago, Pitcher said:

Johnny if you truly wanted to know and report the truth you would be talking about the Biden Crime Family.  You and your Dem friends are covering for one of the most corrupt group of American Politicians in the history of America.  You could care less for the truth when it comes to

 

The Russian Collusion Story

The Spying on the President 

The blatant abuse of power by the Dem Congress Impeaching Trump on a phony charge of Quid Pro Quo. A complete cover for the real criminal, Joe Biden

 

I could go on but Inhave better things to do.  

 

You dont care care for the truth you are here tp spew hate.  

 

Where's the Durham Report again?.....Why hasn't A.G. Barr (Trump appointee) announced indictments again?....Why hasn't FBI Director Wray (Trump appointee) arrested anybody yet?....Why are the vast majority of Republicans is Congress not talking about your list of issues?....Why is Sen. Lindsey Graham (R) only saying "soon"?  Maybe the answer is.....Breitbart, OAN, Fox talking heads, Rush, and any other ultra-rightwing misinformation organization is simply wrong.

 

GO RV, then BV

[Pitcher]

1 minute ago, Shabibilicious said:

Maybe the answer is.....Breitbart, OAN, Fox talking heads, Rush, and any other ultra-rightwing misinformation organization is simply wrong.

 

Maybe, and maybe they are being silenced.  Maybe they are fearful of retaliation by the guilty.  You should not be happy about the way this President has been treated.  It sets a dangerous Precedent.  

 

If you or the Dems don’t like Trump because he has exposed the Dems corruption, try running a Presidential Candidate that has a pulse.  I guess it’s just easier to whine like a little baby.  

 

What are are you going to do when Trump wins in a Landslide.  Are you going to come on this website and whine about how Trump stole the election.  Can you take another 4 years of Trump without exploding.  

Hahaha 😂 😆 😝. 

 

 

[Johnny Dinar]

3 minutes ago, Pitcher said:

What are are you going to do when Trump wins in a Landslide.  Are you going to come on this website and whine about how Trump stole the election.

And if he should lose, will his supporters cry coup and want to start a civil war? I say let's see how this ends by the second week in November. There will be no clear winner for days at the very least. But let's not put the cart before the horse.

JMHO

[Pitcher]

26 minutes ago, Shabibilicious said:

Also, I regularly visit and read Adam's weekly chat....and thank him often.

 

Define often.  Is that once a week, once a month, or are you on the Semi Annual plan.  If you want to thank Adam and support the board why don’t you become a VIP member.  It would be a good idea for you investment and you could go the VIP section and learn about the biggest investment opportunity in our lifetime.  We have several awesome threads running on investments post RV.  

 

You should join.  It’s not expensive at all.  

[Pitcher]

1 minute ago, Johnny Dinar said:

And if he should lose, will his supporters cry coup and want to start a civil war?

 

You mean like the Democrats and their supporters.  The Dems have been staging a Rebellion for 4 years.  Maybe it’s time for the Reps to fight back.  

 

With the stories I’ve read and the vids I posted yesterday there is ZERO chance the Dems are not trying to steal this election.  

 

What will you do if Trump wins Johnny?   You joined the Hate Trump crowd late in the game.  Are you going to come on this site and whine and bash the Reps and President Trump for the next four years?  Don’t you have something more constructive to do?

 

BTW, when are you going to join the VIP.  It would help you when this Dinar investment pops.  

[Johnny Dinar]

4 minutes ago, Pitcher said:

 

You mean like the Democrats and their supporters.  The Dems have been staging a Rebellion for 4 years.  Maybe it’s time for the Reps to fight back.  

 

With the stories I’ve read and the vids I posted yesterday there is ZERO chance the Dems are not trying to steal this election.  

 

What will you do if Trump wins Johnny?   You joined the Hate Trump crowd late in the game.  Are you going to come on this site and whine and bash the Reps and President Trump for the next four years?  Don’t you have something more constructive to do?

 

BTW, when are you going to join the VIP.  It would help you when this Dinar investment pops.  

 

 

I haven't whined at all... I've been posting news and polls and have made no accusations of illegal elections or whatever. If Trump wins, I will point out lies and failures. If Biden wins I will point out lies and failures. I do not subscribe to the conspiracies I see posted here or on any other social media. 

 

But you didn't answer my question. You accused Biden supporters of their actions if Biden loses, but what if Trump loses, what do you think Trump supporters will do? Will they scream coup? Will they call for civil war?

 

In my opinion, anyone supporting civil war is a lunatic. America may not be perfect, but it is damn sure better then any other country. If one side or the other loses then that's the end until the next election. Supporters can do what they've done for the past four years. Point out lies and failures and work to get their next candidate voted in.

 

I've visited this site since 2011 or 2012 and there was never the hate and discourse we now see until Trump was elected. People didn't hate until they were enabled. I like the way it was before 2016... JMHO

[Shabibilicious]

20 minutes ago, Pitcher said:

 

Maybe, and maybe they are being silenced.  Maybe they are fearful of retaliation by the guilty.  You should not be happy about the way this President has been treated.  It sets a dangerous Precedent.  

 

If you or the Dems don’t like Trump because he has exposed the Dems corruption, try running a Presidential Candidate that has a pulse.  I guess it’s just easier to whine like a little baby.  

 

What are are you going to do when Trump wins in a Landslide.  Are you going to come on this website and whine about how Trump stole the election.  Can you take another 4 years of Trump without exploding.  

Hahaha 😂 😆 😝. 

 

 

 

No offense, Pitcher.....but it seems like the local Trump fans in the political forum are doing all the whining,.  And look, if Trump manages to win, it's business as usual....as I'll continue to take his supporters/enablers to task for his divisive rhetoric.  

 

17 minutes ago, Pitcher said:

 

Define often.  Is that once a week, once a month, or are you on the Semi Annual plan.  If you want to thank Adam and support the board why don’t you become a VIP member.  It would be a good idea for you investment and you could go the VIP section and learn about the biggest investment opportunity in our lifetime.  We have several awesome threads running on investments post RV.  

 

You should join.  It’s not expensive at all.  

 

I've thought often about joining VIP....but I also know my political stylings are not in line with the majority around these parts and I would hate to make a purchase and then potentially get banned for something I might say concerning politics during some heated debate.  I've seen plenty of people get kicked to the curb around here for wearing out their welcome.  In the meantime, I'll continue to do my best to state my case while staying out of trouble.

 

GO RV, then BV

[Pitcher]

3 minutes ago, Johnny Dinar said:

I've visited this site since 2011 or 2012 and there was never the hate and discourse we now see until Trump was elected. People didn't hate until they were enabled. I like the way it was before 2016... JMHO

 

I’ve been on this site since 2009 and Ive never seen 3 people so vehemently defend a Criminal Political Party.  

 

BTW, you never answered any of my questions either.  

[Pitcher]

4 minutes ago, Shabibilicious said:

No offense, Pitcher.....but it seems like the local Trump fans in the political forum are doing all the whining,.  And look, if Trump manages to win, it's business as usual....as I'll continue to take his supporters/enablers to task for his divisive rhetoric.  

 

No offense taken.  I will also continue to give my opinion on the Criminal Biden family and the Divisive Dem supporters who cover for him, the Clintons, the Obamas, the Kerry’s and all the Corrupt leaders in the DOJ and the FBI.  

 

Every American should want to know the truth of what the Dems have done the last four years.  We had Special Investigations and an Impeachment trial to learn the truth on Trump.  Don’t you think we should do the same for the Dems.  They are not clean Shabbs.  

[Johnny Dinar]

4 minutes ago, Pitcher said:

 

I’ve been on this site since 2009 and Ive never seen 3 people so vehemently defend a Criminal Political Party.  

 

BTW, you never answered any of my questions either.  

 

I thought I answered your questions... except for the VIP one. I'll join when I think we are close to RV. Honestly I think it is going to be a while. Many things have progressed, but they still can't seem to agree. I don't know if I'll live long enough to see this end... LOL

[Pitcher]

9 minutes ago, Shabibilicious said:

I've thought often about joining VIP....but I also know my political stylings are not in line with the majority around these parts and I would hate to make a purchase and then potentially get banned for something I might say concerning politics during some heated debate.  I've seen plenty of people get kicked to the curb around here for wearing out their welcome.  In the meantime, I'll continue to do my best to state my case while staying out of trouble.

 

That would never happen unless you really crossed the line.