U.S. economy surges in third quarter

By Madison Parry

The U.S. saw record growth in the third quarter, revealing a 33.1 percent increase in annualized pace. While easing of business lockdowns aided in the growth, the GDP nonetheless remains below its pre-COVID-19 level.

Growth in the U.S. economy during the third quarter sparked enthusiasm, data from the U.S. Commerce Department revealing a growth of 33.1 percent in annualized pace.

Aided by a lift in business and production restrictions caused by COVID-19, growth seen in the third quarter nonetheless leaves GDP below its pre-coronavirus level.

While the economy remains 3.5 percent smaller than nearly a year ago, the economy did grow 7.4 percent on a non-annualized basis – still a bit of a record.

Some observers remain skeptical of what lies ahead for the U.S. economy, as it has yet to make a full recovery from the first wave of disruption caused by COVID-19.

This skepticism is paired with a recent rise in viral cases in the U.S. and a diminished supply of aid from Washington.

Personal income fell by about 2.5 percent and the personal savings rate fell to 15.8 percent of disposable personal income, reports Axios. The latter is down from the second quarter, though this too remains high by historical standards.