Investors got some disappointing news about the economic rebound Thursday when the U.S. Commerce Department reported third-quarter GDP growth that fell short of economist expectations.
What Happened?
U.S. GDP grew just 2% in the third quarter, short of economist estimates of 2.8 percent. Third-quarter growth represented the slowest rate since the pandemic recovery began.Why It’s Important
The third-quarter headline number may seem discouragingly low, but it gives investors a clearer picture of just how much of an impact supply chain disruptions, labor shortages, and the delta variant of COVID-19 had on the economy in the third quarter.Consumer spending in the quarter was up just 1.6 percent from a year ago after gaining 12 percent in the second quarter. Spending on goods dropped 9.2 percent in the quarter, but services spending grew 7.9 percent.
