Washington.- The US economy slowed to a modest annual rate of 2.1% in the third quarter, slightly better than originally reported. But economists expect a solid recovery during the October-December quarter, as long as rising inflation and the recent peak in Covid-19 cases do not track economic activity.
The increase in gross domestic product – the economy’s total output of goods and services – was above an initial estimate of 2% for the third quarter, but the revision is still well below the solid increases of 6.3% in the first quarter of this year. and 6.7% in the other.
The weak development of the US economy during the summer reflected a sharp decline in consumption spending, as an increase in Covid-19 cases from the delta variant made people more cautious when buying and the chains were hampered. The supply made things like new cars difficult to get past and also contributed to inflation rising to levels not seen in three decades.
Although cases of covid-19 in recent weeks have begun to increase again in many parts of the country, economists do not believe that the recent increase is sufficient to curb consumer spending, which accounts for 70% of economic activity.
The expectation is that the economy during the current quarter, from October to December, can grow at the strongest rate this year, possibly over 8%.