The U.S. economy grew at a record pace in the third quarter, recovering significant ground it lost earlier in the coronavirus pandemic.
Gross domestic product—the value of all goods and services produced across the economy—rose 7.4% in the third quarter from the prior quarter, or 33.1% at a seasonally and inflation-adjusted annual rate, the Commerce Department said on Thursday. The third quarter increase offset a good chunk of the record drop in output earlier in the year when the virus and related shutdowns disrupted business activity across the country.
The economy rebounded in the third-quarter as businesses reopened, employers restored many jobs, the government provided trillions of dollars of aid and consumers resumed spending. That puts the economy about 3.5% smaller than at the end of last year, adjusted for inflation and seasonal fluctuations.
Forecasters expect the economy to expand through the fourth quarter, though more slowly, amid a pandemic still disrupting lives and commerce as the virus infects tens of thousands of people a day. Analysts project the economy will end 2020 smaller than a year earlier, but grow in 2021.
The GDP report provides the last major quantitative snapshot of the economy before Tuesday’s presidential election. Both President Trump and Democratic presidential nominee Joe Biden have promised to create millions of jobs and further heal the economy.
