US Gross Domestic Product expanded by 2.1% in the third quarter of 2021, the Commerce Department said in its second estimate for the period revised slightly higher than previously
WASHINGTON (Pakistan Point News / Sputnik - 24th November, 2021) US Gross Domestic Product expanded by 2.1% in the third quarter of 2021, the Commerce Department said in its second estimate for the period revised slightly higher than previously.
"Real gross domestic product (GDP) increased at an annual rate of 2.1 percent in the third quarter of 2021," the department said in a release issued Wednesday. It previously reported a 2% growth in its first reading for Q3 GDP.
The US economy shrank 3.5% for all of 2020 from business shutdowns forced by the coronavirus pandemic. Growth this year has been spotty, with an annualized 3.5% expansion in the first quarter and 3.6% in the second.
Third quarter growth slowed on a pullback in consumer spending on goods and services amid continued challenges from the coronavirus pandemic, the Commerce Department said. Consumers account for 70% of all US economic activity.
"The deceleration in real GDP in the third quarter was led by a slowdown in consumer spending," the department said in its release. "A resurgence of COVID-19 cases resulted in new restrictions and delays in the reopening of establishments in some parts of the country."
It added government assistance payments in the form of forgivable loans to businesses, grants to state and local governments, and social benefits to households also decreased in the third quarter.
