US economy slows sharply in Q3 and jobless claims fall By Reuters

US economy slows sharply in Q3 and jobless claims fall By Reuters
US economy slows sharply in Q3 and jobless claims fall By Reuters

WASHINGTON (Reuters) – The U.S. economy grew at the slowest pace in more than a year in the third quarter of this year as the increase in COVID-19 infections put more pressure on global supply chains and led to shortages of goods such as cars, slashing consumer spending.

The Commerce Department said in advance gross domestic product estimates on Thursday that gross domestic product rose 2 percent year-on-year in the third quarter. This is the slowest rate since the second quarter of 2020, when the economy faced a historic contraction following a series of general closure measures aimed at facing the first wave of the Corona pandemic.

The economy grew 6.7 percent in the second quarter. The outbreak of the delta mutant strain exacerbated labor shortages in factories, mines and ports and disrupted supply chains. Economists polled by Reuters had expected gross domestic product to increase 2.7 percent in the last quarter.

Consumer spending, which accounts for more than two-thirds of US economic activity, grew 6.1 percent after a 12 percent growth rate in the second quarter of April to June.

The number of Americans applying for new unemployment benefits has decreased. The improvement in labor market conditions is consistent with a separate report released by the Labor Department on Thursday that showed that claims for unemployment benefits for the first time fell by 10,000 to a seasonally adjusted level of 281,000 last week, the lowest level since mid-March 2020.

This is the third consecutive week that orders remain below the 300K level. Economists polled by Reuters had forecast 290,000 claims in the last week.

(Prepared by Marwa Salam for the Arab Newsletter – Editing by Amal Abu Al-Saud)

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economy slows sharply jobless claims fall Reuters

 
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