Delta wave slowed US economic growth in third quarter

Asia's Tech News Daily

Delta wave slowed US economic growth in third quarter
© Chris Delmas Rising Covid-19 cases led to renewed restrictions that exacerbated shipping woes and slowed the US economic expansion, according to government data

The US economic expansion slowed dramatically in the third quarter to an annual rate of just two percent as consumer spending was choked by resurgent Covid-19 infections, the government said Thursday.

The spread of the Delta variant of the virus over the summer combined with renewed restrictions and global supply snags including shortages of workers and computer chips took a toll on the economy, cutting growth from the 6.7 percent pace in the prior quarter.

The impact on the world’s largest economy was most notable in the more than 26 percent collapse in purchases of big-ticket manufactured goods in the latest three months, the Commerce Department reported.

That drop was partly offset by the 7.9 percent increase in spending on services like travel and hotels, though that was slower than the gain in the prior quarter, according to the data.

The “resurgence of Covid-19 cases resulted in new restrictions and delays in the reopening of establishments in some parts of the country,” the report said.

The US government has supported the economy with massive stimulus measures including the $2 trillion American Rescue Plan enacted in March, but much of that relief including expanded unemployment benefits have lapsed.

“Government assistance payments in the form of forgivable loans to businesses, grants to state and local governments and social benefits to households all decreased,” the Commerce Department said.

Despite the worse-than-expected result in the latest quarter, economists are confident growth will accelerate at the end of 2021.

“Growth was crushed by consumption slowing” as stimulus payments ended, said Ian Shepherdson of Pantheon Macroeconomics

“The Delta wave and the chip shortage — the latter subtracted nearly three percentage points from consumption growth — made things much worse,” he said in an analysis. 

However Shepherdson predicted the fourth quarter “will be very different; spending on services is already rebounding as Delta subsides.”

– Inflation still high –

The hot real estate market that has seen home sales and prices surging during the pandemic showed signs of cooling as residential investment dropped nearly eight percent, according to the data.

Mike Fratantoni, chief economist of the Mortgage Bankers Association, attributed that sag to “the supply chain issues that continue to bedevil the economy” including “builders’ ongoing struggles to obtain key construction inputs.”

Like other economists, Fratantoni said the downdrift in spending is not due to lack of demand.

“Consumers are willing and able to spend, but the goods are just not available,” he said.

There was some good news as inflation measured by the personal consumption expenditures (PCE) price index retreated in the July-September period, but remained at a still-high 5.3 percent compared to 6.5 percent in the second quarter.

If the volatile food and energy prices that have been spiking amid surging demand and supply bottlenecks are excluded, the closely watched inflation gauge increased only 4.5 percent.

Rising prices — including oil pushing above $80 a barrel for the first time in years — have raised fears inflation could spiral out of control, which would compel the Federal Reserve and other central banks to hike interest rates and slow growth.

Inflation is expected to continue to rise until the pandemic-inflicted bottlenecks are resolved worldwide, sometime in 2022.

The White House Council of Economic Advisers put a positive spin on the report, tweeting that while “the recovery from the pandemic will not be linear,” the United States “continues to lead the G7 economies in its pandemic recovery.”

In a reminder of the damage done by the pandemic downturn last year, the data said the economy has grown only 1.4 percent since the final three months of 2019, before Covid-19 struck.

GDP growth compared to the second quarter of this year edged up 0.5 percent, less than one-third the pace of the prior three months, according to the report.

hs/cs

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Ralf Rangnick is the perfect manager for where Roy Keane believes Manchester United are

Manchester United have failed to win the Premier League for eight years and the very fabric of the club is now eroding away. United was built on success and yet ... Read more »

West Brom left with decision to make amid Sam Johnstone's contract stalemate

As we edge ever closer to the January transfer window, the future of West Bromwich Albion number one and England international Sam Johnstone will come further into focus. Save for ... Read more »

In shadow of Texas gas drilling sites, health fears escalate

ARLINGTON, Texas — At a playground outside a North Texas day care center, giggling preschoolers chase each other into a playhouse. Toddlers scoot by on tricycles. A boy cries as ... Read more »

Star Wars Ahsoka spin-off TV series casts Ivanna Sakhno

© Provided by Daily Mail MailOnline logo The cast of Disney Plus‘ new Star Wars spin-off TV series Ahsoka is growing once again, with Ivanna Sakhno coming aboard. The 24-year-old ... Read more »

Rep. Debbie Dingell says her office was broken into, vandalized

Representative Debbie Dingell said her office was vandalized on Monday. Rod Lamkey / CNP /MediaPunch Vandals broke into Rep. Debbie Dingell’s Michigan office, and trashed some items belonging to her ... Read more »

Ghislaine Maxwell 'preyed on vulnerable young girls', trial prosecutors allege

© JANE ROSENBERG In this courtroom sketch, Ghislaine Maxwell attends at the start of her trial on charges of sex trafficking in New York City. Reuters Ghislaine Maxwell’s lawyer told ... Read more »

WHO warns new virus variant 'omicron' poses 'very high' risk

© The Manila Times People stand holding shopping bags on Regent Street in London, Monday, Nov. 29, 2021. Countries around the world slammed their doors shut again to try to ... Read more »

How to grind XP in Battlefield Portal

© Provided by GamePur With the launch of the Battlefield, Portal players are now able to experience the equipment and maps that made Bad Company 2, Battlefield 3, and Battlefield ... Read more »

Wild Rift patch 2.6 brings two champions, Ultra Rapid Fire mode, new items, and more

© Provided by GamePur After some concern that Wild Rift’s final major update of 2021 might be delayed until 2022, we now have confirmation that patch 2.6 will be arriving ... Read more »

Afternoon number coding in NCR to start Dec. 1, 2021 —MMDA

MMDA Chairman Benhur Abalos at Oct. 11, 2021 briefing The implementation of the modified number coding scheme in the National Capital Region (NCR) will start on Wednesday, December 1, according ... Read more »

Dubai resident stranded in South Africa as Omicron travel ban takes effect

© Provided by The National Sonja de Pattenden, left, with friends who are stuck in South Africa after flights to Dubai were cancelled. Photo: Sonja de Pattenden Live updates: follow ... Read more »

Miss Kentucky Elle Smith has been crowned the winner of Miss USA 2021

© Grant Foto Miss Kentucky Elle Smith is the new Miss USA. Grant Foto Miss Kentucky Elle Smith, 23, was crowned the new Miss USA on Monday night.  Smith spoke ... Read more »

How to book a Pfizer booster shot in Dubai and am I eligible for an appointment?

© PAWAN SINGH A Covid-19 vaccination centre in Ajman. All adults are now eligible for a booster shot to protect against the virus. Pawan Singh / The National Live updates: ... Read more »

Cristiano Ronaldo hits out at 'lies' over Ballon d'Or rivalry with Lionel Messi

© DAVID KLEIN Soccer Football – Premier League – Chelsea v Manchester United – Stamford Bridge, London, Britain – November 28, 2021 Manchester United’s Cristiano Ronaldo reacts REUTERS/David Klein EDITORIAL ... Read more »

Sheikh Mohammed pardons 672 prisoners in Dubai

© Motivate Publishing Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai A total of 672 prisoners have been pardoned and ... Read more »

83 trailer out. Ranveer Singh leads Team India to victory as Kapil Dev

Ranveer Singh’s 83 trailer has been released The wait is finally over. Ranveer Singh and Deepika Padukone’s 83 trailer has been released. The film’s release got delayed due to the ... Read more »

KKM buka semula tabung khas untuk rakyat menderma

© Provided by Free Malaysia Today Poster yang tersebar di Twitter baru-baru ini memaklumkan mengenai akaun khas di mana rakyat boleh membuat sumbangan. PETALING JAYA: Kementerian Kesihatan Malaysia (KKM) mengaktifkan ... Read more »

A man spent $260,000 to build a replica of the Taj Mahal complete with marble columns, and dedicated the monument to his wife

© Provided by Insider Asia The Taj Mahal in Agra was built by Shah Jahan as a lasting symbol of his love for his wife Mumtaz. Shutterstock.com Indian businessman Anand ... Read more »

Myanmar court delays verdict in Suu Kyi incitement trial: source

© Mark Metcalfe Aung San Suu Kyi faces three years in prison if found guilty of incitement against the military, as well as a catalogue of other charges that could ... Read more »

Tiger Woods Says the 'Unfortunate Reality' Is He'll Never Play 'Full Time, Ever Again' After Car Crash

© Tracy Wilcox/PGA TOUR via Getty Images Tiger Woods knows his career in golf won’t ever be the same. The 45-year-old golfer got candid about the possibility of him never ... Read more »

Amazon union fight to be rerun in Alabama

© Getty Images Amazon has fiercely opposed efforts by the RWDSU to unionise workers at its warehouse in Bessemer, Alabama Staff at an Amazon warehouse in Alabama will get a ... Read more »

Proud of suspension for raising voice against govt, says TMC MP

© Provided by Hindustan Times TMC MP Dola Sen said they were proud disciples of TMC chief Mamata Banerjee and were raising their voices in the Parliament in favour of the people. ... Read more »

Omicron strain: New COVID-19 variant is 6 times more dangerous than Delta variant - Know 'unfamiliar' symptoms

© Provided by DNA The new COVID-19 variant B.1.1.529 that WHO named Omicron has become a big problem in the world. The WHO has also dubbed Omicron as a ‘variant ... Read more »

Uttar Pradesh, Rajasthan may see rainfall and thunderstorm on December 2: IMD

© Provided by Zee News A fresh, active Western disturbance is likely to affect Northwest and adjoining Central India from the night of November 30, said Indian Meteorological Department (IMD) ... Read more »

Honduras leftist leader could present opportunities for US

© Provided by Associated Press Free Party presidential candidate Xiomara Castro acknowledges her supporters after general elections, in Tegucigalpa, Honduras, Sunday, Nov. 28, 2021. Castro claimed victory, setting up a ... Read more »

UP Diliman gears up for limited face-to-face classes

THE University of the Philippines Diliman (UPD) has been preparing for the gradual reopening of the campus for limited face-to-face classes after the Inter-Agency Task Force (IATF) gave the Commission ... Read more »

Multicultural Scotland has many festivals to celebrate – Angus Robertson MSP

© Angus Robertson with Rabbi Pinny Weinman and Scottish national Hannukah celebration sponsor Edward G… Modern Scotland is a nation of rich cultures and traditions with many backgrounds. In these ... Read more »

Parag Agrawal shuts down Republicans' bizarre attempt to paint him as racist just hours into new CEO role

© AP File: Parag Agrawal hits back at conservative voices who dug out his 2010 tweet in which he quoted a comedian’s line about Islamophobia and racism in America – ... Read more »

English Channel refugee crisis has been made worse by Brexit – Angus Robertson MSP

© Boris Johnson continues to be his juvenile self in dealings with France over refugees crossing the E… As you will have read, last week 27 people died trying to ... Read more »

What charges does Jussie Smollett face at trial?

© AP Jussie Smollett – Copyright 2020 The Associated Press. All Rights Reserved. The twists, turns, and oddities of the legal saga surrounding Jussie Smollett’s claim in 2019 that he ... Read more »

Nurses worldwide call out S'pore, rich nations for hoarding vaccines

Bottles of “COVID-19 Vaccine.” Photo: Brano Nursing unions representing over 2.5 million healthcare workers globally are putting pressure on rich nations like Singapore to temporarily waive COVID-19 vaccine patents so ... Read more »

Priyanka Chopra and Nick Jonas enjoy date night at British Fashion Awards 2021

Nick Jonas shared photos with Priyanka Chopra. He called her ‘the star of the show’ at the British Fashion Awards 2021. Priyanka Chopra attended the British Fashion Awards 2021 with ... Read more »

Anushka Sharma Enjoys Tea Party With Athiya Shetty And Rohit Sharma's Wife Ritika in Viral Pics

© Provided by News18 Anushka Sharma shared throwback pictures of a tea party she attended a couple of weeks ago. The Bollywood actress, on Monday, reshared a three-week-old Instagram post ... Read more »

Parag Agrawal's 10-Year-old Tweet on First Day as Twitter Employee is Making Desis Proud

© Provided by News18 Parag Agrawal’s 10-Year-old Tweet on First Day as Twitter Employee is Making Desis Proud The Internet never forgets: be it good, bad, or the ugly. But ... Read more »

Bigg Boss Telugu 5: Fans protest asking justice for Anchor Ravi as he gets evicted from the show; VIDEO

© Provided by Pinkvilla Bigg Boss Telugu 5 is witnessing news twists and turns with each passing day. One of the strongest contestants, Anchor Ravi recently got evicted from Nagarjuna ... Read more »

Deepika Padukone Looks Dazzling In Embellished Ivory Saree, See The Diva's Best Saree Moments

Deepika Padukone is a picture of elegance in an embellished ivory saree. (Image: Instagram) Deepika Padukone accessorises her saree look with stunning emerald earrings. (Image: Instagram) Deepika Padukone looks graceful ... Read more »

83 Trailer: Ranveer Singh and his team perfectly evoke nostalgia as they recreate Kapil Dev's historic win for Indian cricket; BLOCKBUSTER written all over

© Provided by BollywoodLife.com 83 trailer out now: Finally! Ranveer Singh starrer Kabir Khan’s biographical drama’s trailer is out now. And it has BLOCKBUSTER written all over it. Yes, you ... Read more »

Kaun Banega Crorepati 13: Amitabh Bachchan gets teary-eyed on 1000th episode with Navya Naveli Nanda and Shweta Bachchan; here's why – watch video

© Provided by BollywoodLife.com For the 1000th episode of Kaun Banega Crorepati, it’s going to be an all-out family affair on the legendary game show as host Amitabh Bachchan will ... Read more »

IPL Retention List: MS Dhoni, Virat Kohli, Rohit Sharma And Rishabh Pant Retained by Their Franchises

© Provided by News18 IPL Retention List: MS Dhoni, Virat Kohli, Rohit Sharma And Rishabh Pant Retained by Their Franchises Several big stars including the likes of Virat Kohli, Rohit Sharma, ... Read more »

WHO Calls for New Accord to Fight Pandemics After Emergence of Omicron Variant

The World Health Organization has called for a new international accord on tackling pandemics, following the emergence of the new Omicron variant of the coronavirus. During a special session of ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic