WASHINGTON (Daily Mail) - U.S. economic growth slowed to a 2% annual rate from July to September, the weakest quarterly growth since recovery from the pandemic recession began last year, amid the ongoing global supply chain crisis and subsequent rising inflation.
The nation’s gross domestic product (GDP) - its total output of goods and services - declined sharply from the 6%- plus annual growth rates of each of the previous two quarters, according to Thursday’s report from the Commerce Department.
However, many economists point to a light at the end of the tunnel and forecast GDP to bounce back at a rate of 6% or even better in the current fourth quarter as confirmed COVID-19 cases decline, vaccination rates rise and more Americans venture out to spend money.
Thursday’s report comes as California’s San Pedro Bay ports aim to move 40 percent of empty shipping containers by Sunday, officials said, as the Los Angeles and Long Beach ports – which move about 40 percent of shipped cargo entering the U.S. – struggled with an unprecedented backlog that’s threatening to derail holiday shopping.
Though Airlines have reported growing passenger traffic, businesses are spending more on equipment, and wages are increasing as employers struggle to draw more people back into the job market. A resurgence of consumer spending could help energize the economy as the year nears a close.