The performance of the US economy is worse than what analysts had previously expected. The slowdown in economic growth is supported by preliminary GDP data, which shows a greater loss of momentum than analysts had expected. Quarterly growth was just 2%, a rate not previously measured during the recovery from the coronavirus crisis. Experts assumed economic growth would slow to 2.7%, a disappointing figure. Incidentally, an increase of 6.7% was reported in the previous quarter, compared to the fact that the deterioration is more pronounced.
Declining investment in household fixed assets and federal government spending dampened growth, as did a rise in the foreign trade deficit, which rose to a near record high of $73.3 billion in August. Household consumption, which accounts for nearly 70% of the economy, grew just 1.6%, after rising 12% in the second quarter. In general, it seems that the uncertainty caused by the epidemic, the scarcity of raw materials and production difficulties continue to shape the economic situation, while the effect of government support, which was provided during the epidemic, is slowing down.
Cover Photo: Getty Images
“Social media evangelist. Baconaholic. Devoted reader. Twitter scholar. Avid coffee trailblazer.”