U.S. economic growth slows sharply in summer

U.S. President Joe Biden received less good macroeconomic news on Thursday. During July-September, the country’s GDP grew by 2 percent year-on-year. This is up 6.7 percent in the second quarter and three times slower than the slowest growth in more than a year. Economists expect a 2.7 percent increase.

The US Department of Commerce does not have to search long enough for explanations for slower growth than expected. Families consumed less. The finger was cut off as the government reduced Corona support. In addition, a new corona wave swept across the United States in the summer.

But global supply chain problems also affected the US economy. This led to a shortage of certain items such as cars. Hurricane Ida, which destroyed some of U.S. energy production in late August, put a brake on growth.

Economists currently find no cause for great concern. They take signals that indicate they are taking economic action. The number of corona infections has decreased again. And unemployment benefit claims fell to a 19-month low last week.

“The U.S. economy slowed in the third quarter, but growth has already accelerated again,” said Sal Quattri, an economist at BMO Capital Markets.