Hampered by rising COVID-19 cases and persistent supply shortages, the U.S. economy slowed to a 2% annual rate in the July-September period, the weakest quarterly growth since the recovery from the pandemic recession began last year.
Thursday’s report from the Commerce Department estimated that the nation’s gross domestic product (GDP) – its total output of goods and services – declined sharply from the 6%-plus annual growth rates of each of the previous two quarters.
At the same time, though, rising prices, especially for gasoline, food, rent and other staples, are imposing a burden on American consumers and eroding the benefits of higher wages. Inflation has emerged as a threat to the economic recovery and a key concern for the Federal Reserve as it prepares to start withdrawing the emergency aid it provided to the economy after the recession struck last year.
Thursday´s report from the government, the first of three estimates of last quarter´s GDP, showed that consumer spending slowed to an annual growth rate of just 1.6% from July through September, after a robust 12% annual rate in the second quarter.
The government´s estimate Thursday of a 2% annual increase in GDP last quarter was even lower than economists´ forecasts for a significant slowdown in growth. The effects of the delta variant in keeping some people away from restaurants, retail shops and entertainment venues was seen as a drag on growth.
In September, America´s employers added just 194,000 jobs, a second straight sluggish monthly gain and evidence that the pandemic was keeping its grip on the economy, with many companies struggling to fill millions of open jobs.
Obama has 2.2% growth and was praised for it.
The “most popular President ever with 81 million votes” dipped below that with higher inflation.
Gone is the Bill Clinton “it’s the economy, stupid” principle. The Democrats are all about meager growth and inflation.
And it’s still only the first year of Biden’s first term. It’s only going to get worse from here.
What is wrong with you???
You have to lower your expectations.
“Rising” covid cases. Ya ok…. In your tiny mind maybe..
Curby, this was exactly my reaction to that statement. I like the Daily Mail, so maybe the author of that article just parroted what was claimed by the Gubmint, which wants to blame everything on Covid (when not blaming it on Trump). But anyone with a functional brain can see that Covid “cases” don’t affect the economy. It’s just the insane Gubmint overreaction that kills jobs and incomes (unless you’re one of the Anointed.)
Back to the question of what exactly is a “case?”
The more people tested, the more positives you can expect, so more cases. See simple. If you were in a shop on Tuesday, and you hear someone in the shop on Monday tested positive, you should get tested… See, more cases.
Hospitalizations and deaths are pretty much flat, but the number of positive test results is going up. So, rising “cases”
“The effects of the delta variant in keeping some people away from restaurants, retail shops and entertainment venues ”
The ‘effects’ being mask mandates and insane price increases.
The economy is being driven into the ground. Businesses closing, industries shutting down, and nothing popping up to replace them.
But hey, no more mean tweets, so it’s all worth it, amirite?
*smh*
The economy could get really interesting?
https://asia.nikkei.com/Business/Markets/China-debt-crunch/China-Evergrande-is-a-day-away-from-default.-What-happens-next
RTWT Evergrande may default on a dollar denominated bond tomorrow. That could result in cross defaults on foreign currency denominated bonds, but not Chinese Yuan bonds. It sounds like China may try to work out a solution Chinese Bonds, but let the foreign bonds go? Last week the Chinese gave the Evergrande CEO an opportunity to contribute his whole multi Billion Dollar fortune to resolving the Evergrande Debt Problem.
Could be a big problem? Or the Chinese bail them out to keep all the other property development companies and 25% of the Chinese economy from cratering next month?
Good News. Evergrande made the bond payment today. Default Avoided for now.
https://www.msn.com/en-us/money/other/evergrande-paid-another-bond-interest-just-in-time-again-averting-a-default-after-chinese-authorities-pile-on-pressure/ar-AAQ4Qrw
I’m not sure that’s good news, and I hope it’s only a temporary delay of the end.