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US economy surges by record 33.1% in Q3, but COVID spike expected to slow growth

US economy surges by record 33.1% in Q3, but COVID spike expected to slow growth
Posted at 7:24 AM, Nov 25, 2020
and last updated 2020-11-25 10:14:27-05

WASHINGTON (AP) — The U.S. economy rebounded at a record pace of 33.1% in the July-September quarter, unchanged from the first estimate a month ago.

But a resurgence in the coronavirus is expected to slow growth sharply in the current quarter, with some analysts even raising the specter of a double-dip recession.

Last week, the number of Americans applying for unemployment benefits rose to 778,000. That’s up from 748,000 the week before, according to the Department of Labor.

The Commerce Department reported Wednesday that the overall increase in the gross domestic product, the country’s total output of goods and services, remained the same as its first estimate although some components were revised.

Bigger gains in business investment, housing and exports were offset by downward revisions to state and local government spending, business inventories and consumer spending.

The Associated Press found that the 33.1% gain was the largest quarterly gain on record, surpassing the old mark of a 16.7% increase in 1950.

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