The picture won’t be pretty for third-quarter economic growth, but it should get better
The U.S. economic recovery slowed sharply in the previous three months, as products remained stranded at normally bustling ports, employers struggled to find workers and consumers battled with rising prices.
When the Commerce Department releases Thursday its first estimate for third-quarter annualized gross domestic product growth, it likely will show an increase of just 2.8%, according to Dow Jones estimates.
While that kind of number would have seemed perfectly fine in pre-Covid times, it actually would be the slowest pace since the recovery began in April 2020 off the shortest but steepest recession in U.S. history.
Moreover, there’s a chance the economy didn’t grow at all in the quarter — the Atlanta Fed’s GDPNow tracker lowered its estimate to 0.2%, with the most recent downgrade the result of a lowered outlook for government spending and real net exports.
Economists aren’t worried, however. They largely say the slowdown is the result of factors, principally related to supply chain bottlenecks, that will ease in the months ahead and allow the recovery to continue.
Reference: CNBC
Read More: GDP growth for third quarter won’t be pretty, but it should get better (cnbc.com)
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