Alexi Rosenfeld/Getty ImagesUS gross domestic product grew at a record 33.1% annualized rate in the second quarter, the Commerce Department said on Thursday.
The jump follows the second quarter's 31.4% annualized slump, and roughly doubles the next-biggest increase across history. Economists surveyed by Bloomberg expected a 32% increase.
The GDP reading caps a quarter of economic reopening and revived business activity throughout the country.
Still, the 33% increase doesn't fully offset the prior quarter's decline. Experts warn a full recovery may take years, as the pace of GDP growth is set to moderate significantly in the last three months of 2020.
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Just as the coronavirus' toll drove a record plunge in economic output, the US's summer recovery fueled the largest-ever jump in gross domestic product.
US gross domestic product grew at an annualized rate of 33.1% in the third quarter, the Commerce Department said on Thursday. The reading marks the largest output gain in recorded history, based on data going back to the 1940s. It came in roughly double the next-biggest jump seen in 1950. Economists surveyed by Bloomberg expected a 32% gain.
The reading represents how much the economy would've grown had the third-quarter rate lasted for a year. It's a sharp reversal from the second quarter, which saw a 31.4% annualized rate of contraction.
Thursday's figure is also the first of three estimates published by the Commerce Department, and could be revised in the coming months.
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The historic rebound was led by the gradual reopening of businesses and revitalized spending activity. As quarantine orders eased, Americans used cash from the $2.2 trillion CARES Act to revive the economy from its frozen state.
Yet the V-shaped trendline in GDP growth glosses over the recovery's nuances. More frequently updated indicators such as nonfarm payrolls, credit-card spending, and purchasing managers' indexes slowed their pace of recovery through the end of the summer.
Roughly half of the Americans who lost their jobs in the pandemic remain unemployed. Consumer spending enjoyed a sharp bounce-back before easing to a more moderate growth rate.
And while the 33% GDP increase initially seems to offset the second-quarter slump, it doesn't place overall output back at its pre-pandemic highs. Third-quarter growth would have needed to reach roughly 46% to balance out the record downturn.
Economists warn a full recovery may take years, as fourth-quarter growth is expected to land well below Thursday's blockbuster reading.
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The recovery also faces risks from soaring COVID-19 case counts. Some countries in Europe have already reinstated lockdowns as coronavirus infection rates and death tolls leap to record highs, leaving some fearing the US could take similar steps.
Should the economy continue to bounce back amid the virus resurgence, it needs to do so without fresh fiscal stimulus. The CARES Act has been widely praised as a primary driver of the third quarter's sharp improvement, but aid allocated in the bill has largely expired.
Hopes for a near-term stimulus boost were extinguished on Monday when Senate Majority Leader Mitch McConnell adjourned the Senate until November 9. The US presidential election is set to determine the fate of another fiscal support bill.
Wall Street economists see a second Trump term likely furthering the recent legislative stalemate. A Democratic sweep, however, could yield a sizable stimulus measure in early 2021.
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WINOOSKI, Vt., Oct. 30, 2020 (GLOBE NEWSWIRE) -- Reading Plus, a research-backed online program that uses personalized instruction to improve students’ reading proficiency, today announced it earned the Research-Based Design product certification from Digital Promise, a nonprofit developed to spur innovation in education and improve the opportunity to learn for all through technology and research. The certification is awarded after passing a rigorous assessment process and serves as a reliable signal for district and school administrators, educators, and families looking for evidence of proven educational technology products.
Reading Plus develops students’ comprehension, vocabulary, stamina, and motivation. It is the only literacy program that addresses silent reading fluency and the physical aspect of reading – the way the eyes move across a page – which impacts a student’s ability to process and retain information. Reading Plus’s patented Guided Window scaffolds the reading experience by directing the reader’s eyes, strengthening necessary visual skills associated with reading efficiency.
Reading Plus’s program is validated by more than 100 research studies, including 38 peer-reviewed journal articles and conference presentations.
“Decades of pioneering research on silent reading fluency is the cornerstone of Reading Plus,” said Dr. Alexandra Spichtig, chief research officer of Reading Plus. “It propels our program forward to help students across the country improve their reading proficiency over two grade levels in a single school year. The Research-Based Design product certification from Digital Promise showcases our commitment to rigorous research.”
To meet the Research-Based Design product certification criteria, Reading Plus proved that it consulted research about learning to inform product design; developed a theoretical framework, such as a logic model or theory of change, grounded in this research to drive product planning; and that it publicly communicates the program’s research basis.
Digital Promise launched the Research-Based Design product certification in February 2020. It uses a competency-based learning framework developed in consultation with the nonprofit’s Learner Variability Project advisory board, expert researchers in the learning sciences field, and nearly 50 educators across the United States. More information on Digital Promise’s product certifications can be found at https://productcertifications.digitalpromise.org/.
To learn more about the benefits of the Reading Plus program, visit https://www.readingplus.com/.
ABOUT READING PLUSReading Plus is a research-proven, online program that provides personalized intervention and instruction for students, improving reading proficiency between 2.0 to 2.5 grade levels in a single school year. Reading Plus develops comprehension, vocabulary, motivation and stamina, while also going beyond the offerings of other literacy programs by addressing silent reading fluency. It supports students with diverse needs, including English learners, special education, RTI/MTSS tiers 1-3, and advanced readers. Reading Plus provides educators with an easy-to-use management and reporting system, extensive resources to guide differentiated instruction, professional development and highly-rated customer support. The Reading Plus program is used in more than 5,000 schools nationally, helping over 1 million students become efficient, confident, lifelong readers. For more information visit www.readingplus.com.
PITTSBURGH, Sept. 25, 2020 /PRNewswire/ -- The United Steelworkers (USW) today said that union members at Libbey Glass facilities in Toledo, Ohio, and Shreveport, Louisiana, have ratified new, four-year labor agreements with the bankrupt company.
Members of the USW and International Association of Machinists (IAM) voted overwhelming in favor of the contracts, which include a temporary wage reduction and other concessions that will give Libbey financial relief to reorganize its debts under Chapter 11 of the federal bankruptcy code but also include provisions to increase wages when the company's financial condition improves.
USW International Vice President (Administration) David McCall, who chaired the negotiations with Libbey, credited the solidarity of the combined union membership and their negotiating committee for standing up to demand fairness and dignity when management and the company's creditors sought major, permanent concessions.
"Throughout this process, our members made it clear that cutting wages and benefits for hourly workers without shared sacrifices by management would not keep the company afloat," McCall said. "We are proud that we stood together to ensure our voices were heard and we achieved a more just resolution than the mammoth concessions that management originally proposed."
Under the agreements, Libbey will discontinue production in Shreveport, but will maintain a shipping and distribution facility at the location.
The USW represents 850,000 men and women employed in manufacturing, metals, mining, pulp and paper, rubber, chemicals, glass, auto supply and the energy-producing industries, along with a growing number of workers in public sector, service, academic and tech professions.
More information, contact: Tony Montana – 412-562-2592 or firstname.lastname@example.org
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SOURCE United Steelworkers (USW)