Economy set to shatter records for growth, but GDP will still show U.S. in a huge hole – By Jeffry Bartash (Marketwatch) / Oct 28 2020
Economy likely soared 33%-plus after record plunge in the spring
The U.S. economy likely grew at a record 30%-plus annual pace in the third quarter, the government is expected to report on Thursday. Great news, right? Well, yes, but it will tell us very little about how fast the U.S. is growing right now and will still show a gaping hole in the economy.
Here’s how to read the third-quarter report on gross domestic product.
Record GDP growth
After a record 31.4% annualized decline in second quarter when the economy was largely locked down to combat the coronavirus pandemic, GDP was bound to soar once the U.S. reopened for business. And it did.
Consumer spending snapped back like a rubber band, business spending on new equipment surged, and the housing market enjoyed a surprising boom in the midst of a pandemic owing to record low mortgage interest rates.
Continue to article: https://www.marketwatch.com/story/economy-set-to-shatter-records-for-growth-but-gdp-will-still-show-us-in-a-huge-hole-2020-10-28?mod=home-page
