Market Data
October 1, 2021
U.S. GDP’s Advance Q3 Estimate Disappoints at Just 2.0% Growth
Written by David Schollaert
U.S. gross domestic product (GDP) grew at a 2.0% annual rate in the third quarter, the slowest pace in more than a year, according to the Bureau of Economic Analysis (BEA). The Delta variant is likely to blame for slowing U.S. economic growth in the third quarter. Consumer spending was stifled as the new strain of COVID-19 flared up, further straining global supply chains and causing shortages across consumer goods.
The latest review by the BEA is a backward-looking glimpse at the economy’s worst quarter since the recovery began. Looking ahead, much will depend on the virus’ path and whether higher prices, enduring supply-chain disruptions and a shaky job market dampen consumer spending going into the holiday season. If the positive trends pile up – assuming no major stumbles in the final three months of the year – economists believe the economy should grow by more than 5% overall in 2021. That would be its strongest year since 1984, when GDP grew by more than 7% in a rebound from a double-dip recession.
