Video Credit: Reuters - Politics - Duration: 01:40s - Published
U.S. economy scores record Q3 rebound
The U.S. economy grew at an unrivaled pace in the third quarter as the government poured out more than $3 trillion worth of pandemic relief which fueled consumer spending, but the deep scars from the COVID-19 recession could take a year or more to heal.
The U.S. economy grew at its fastest pace ever in the third quarter.
Gross Domestic Product - or GDP - surged at 7.4 percent - that’s 33% on an annualized basis.
That was the fastest pace since the government started keeping records in 1947 and followed a historic shrinkage in the second quarter.
The GDP report is one of the last major economic scorecards before next week’s presidential election and President Donald Trump seized on it - tweeting, Thursday: "GDP number just announced.
Biggest and Best in the History of our Country, and not even close.
Next year will be FANTASTIC!!!
" But deep scars from the recession could take a year or more to heal.
U.S. output remains below its level in the fourth quarter of 2019, a fact Trump’s Democratic challenger Joe Biden is almost certain to highlight.
The government’s rescue package provided a lifeline for many businesses and the unemployed, juicing up consumer spending, which on its own powered the surge in GDP.
But government funding has since been depleted with no deal in sight for another round of relief.
New COVID-19 cases are spiraling across the country, forcing restrictions on businesses like restaurants and bars.
Just over half of the more than 22 million jobs lost during the health crisis have been recouped, and layoffs persist… The Labor Department reported Thursday that 751,000 Americans filed for state unemployment benefits last week.
Though claims have dropped from records set in March, they remain above the peak seen during the Great Recession.
On Friday, US stocks made gains as hopes for a peaceful transition to the Biden administration offset concerns about soaring COVID-19 cases. Business Insider reports S&P 500 closed at a record high. On Thursday Pres. Donald Trump said he'd hand over power when the Electoral College certifies President-elect Joe Biden as the winner of the 2020 election. The US reported 125,082 new coronavirus cases on Thursday. That brought the seven-day average to 163,831, according to the COVID Tracking Project. Deaths topped 254,000, and hospitalizations jumped above 90,000. The stock market's "fear gauge" fell as low as 19.51 on Friday, dropping amid low trading volumes to its lowest level since the pandemic began.
The number of Americans filing new claims for unemployment benefits fell to a seven-month low last week, but the pace of decline has slowed and further improvement could be limited by a raging COVID-19 pandemic and lack of additional fiscal stimulus. Fred Katayama reports.
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