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• Commerce Department revised GDP to 2.3% for the July-September quarter
• Growth in the third quarter was hampered due to strained global supply chains and Hurricane Ida at the end of August as well
U.S. economic growth for the third quarter was revised slightly higher but was still the slowest since the second quarter of 2020.
The Commerce Department on Wednesday said the gross domestic product increased at a 2.3% annualized rate for the July-September quarter.
Last month, the GDP was estimated to be 2.1%. The economy grew at 6.7% in the second quarter.
Growth in the third quarter was hampered due to strained global supply chains and Hurricane Ida at the end of August as well.
The economy, though, has been on the path of recovery. Consumer spending in October increased significantly. The trade deficit fell in October as exports have risen to a new high and unemployment rate is at a 21-month low of 4.2%.
It is expected that growth could be hampered due to increasing coronavirus infections on account of Omicron variant spread.
Another factor affecting growth could be Democrat Senator Joe Manchin’s decision of not supporting President Joe Biden’s domestic investment bill known as Build Back Better (BBB).
On Sunday, Goldman Sachs reduced its GDP growth forecast for the first quarter from 3% to 2%.
Picture Credits: Reuters