Home Economy US economic growth slows sharply in third quarter

US economic growth slows sharply in third quarter


US economic growth slowed considerably in the third quarter due to supply-chain disruptions, a resurgence of Covid-19 and slower consumer spending.

The world’s largest economy expanded 2 per cent on an annualised basis in the three months to the end of September, according to data from the commerce department on Thursday, marking the weakest quarterly growth since the coronavirus recession last year.

That was below expectations for a 2.7 per cent rise, according to a Refinitiv poll of economists, and represented a slowdown from the 6.7 per cent pace in the second quarter.

Gross domestic product rose 0.5 per cent compared with the previous quarter, based on a measure used by other major economies.

Flagging consumption was a key culprit for the economy’s latest soft patch, as consumer spending rose just 1.6 per cent.

Millions of US households received stimulus cheques from the federal government between mid-March and early April, which helped…

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