The U.S. economy grew at an annual rate of 2.6 percent in the third quarter, marking its first increase in 2022 and reversing a six-month slump. The turnaround comes at a crucial time for Democrats, who are racing to assuage voter concerns before midterms.
The report on gross domestic product, released Thursday by the Bureau of Economic Analysis, revealed a more upbeat snapshot of the economy less than two weeks before the midterm elections, even as high inflation has proved a persistent problem for Democrats.
The biggest boost, though, came from a narrowing trade deficit, with American retailers importing fewer items and exporting more goods as well as services, such as travel. That is a stark reversal from earlier in the year, when the gap between incoming goods and outgoing ones was at its widest on record.
On Thursday, President Biden lauded the positive GDP report while acknowledging that inflation remains a problem.“Today we got further evidence that our economic recovery is continuing to power forward,” Biden said in a statement, adding, “Our economy has created 10 million jobs, unemployment is at a 50 year low, and U.S. manufacturing is booming. … Now, we need to make more progress on our top economic challenge: bringing down high prices for American families.
Other head winds included a slowdown in the housing market and a decrease in retail sales, particularly online. The positive report follows two quarters of contraction. Those declines met one definition of a recession, though the official determination is made A range of major companies, including Bank of America, Johnson & Johnson and Lockheed Martin, have reported better-than-expected sales and profits in recent weeks, reflecting strength in the corporate sector. However, many executives say they are bracing for uncertainty ahead, as inflation and higher interest rates ripple through household budgets.At McDonald’s, for example, customers are buying fewer items per transaction and are trading down from meals to lower-priced items.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New GDP report shows an economic turnaround, but don't be fooledThursday's GDP report shows the U.S. economy grew at an annual rate of 2.6% in July, August and September, after shrinking in the first half of the year.
Read more »
New GDP report shows an economic turnaround, but don't be fooledJUST IN: The U.S. economy rebounded in the third quarter, growing at an annual rate of 2.6%, after shrinking in the first half of the year — but analysts warn it may overstate the economy's strength.
Read more »
GDP Report Shows US Economy Grew 2.6% Last Quarter in Reprieve From Recession FearsStronger exports and steady consumer spending, backed by a healthy job market, helped restore growth to the world’s biggest economy.
Read more »
New GDP report shows an economic turnaround, but don't be fooledThursday's GDP report shows the U.S. economy grew at an annual rate of 2.6% in July, August and September, after shrinking in the first half of the year.
Read more »
New GDP Report to Show US Economy Rebounded in the Third QuarterThe U.S. economy has likely returned to growth after having shrunk in each of the first two quarters of 2022.
Read more »
Forex Today: ECB rate announcement, US Q3 GDP to drive market actionHere is what you need to know on Thursday, October 27: After having declined 1% for the second straight day on Wednesday, the US Dollar Index stays re
Read more »