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- U.S. economy expands slightly more than initially thought in Q3
U.S. economy expands slightly more than initially thought in Q3
A report from
the Commerce Department showed on Tuesday that the U.S. economy grew slightly more
than initially thought in the third quarter of 2020, as gains in personal
consumption expenditures (PCE) and nonresidential fixed investment were revised
upwardly.
According to
the third estimate, the U.S. gross domestic product (GDP) surged at an annual
rate of 33.4 percent in the third quarter, better than a 33.1 percent advance reported
in the second estimate. This represented the biggest expansion ever.
Economists had
expected the contraction rate to be unrevised at 33.1 percent.
In the second
quarter, the economy shrank by record 31.4 percent q-o-q.
The increase in
real GDP reflected gains in PCE, private inventory investment, exports, nonresidential
fixed investment, and residential fixed investment, which, however, were partly
offset by declines in federal government spending (reflecting fewer fees paid
to administer the Paycheck Protection Program loans) and state and local
government spending. Meanwhile, imports, which are a subtraction in the
calculation of GDP, rose.
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