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2021-12-22

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U.S. third-quarter economic growth revised slightly higher

WASHINGTON, Dec 22 (Reuters) - U.S. economic growth slowed sharply in the third quarter amid a flare

U.S. third-quarter economic growth revised slightly higher

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That was up from the 2.1% pace estimated last month but was still the slowest since the second quarter of 2020, when the economy suffered a historic contraction in the wake of tough mandatory measures to contain the first wave of coronavirus cases.</p>\n<p>Economists polled by Reuters had forecast third-quarter GDP growth unrevised at a 2.1% pace. The economy grew at a 6.7% rate in the second quarter.</p>\n<p>Last quarter's slower growth pace also reflected shortages of motor vehicles amid strained global supply chains as well as a decline in pandemic relief money from the government to businesses, households and state and local governments.</p>\n<p>Growth was also hampered by Hurricane Ida, which devastated U.S. offshore energy production at the end of August.</p>\n<p>The economy has, however, regained speed. Consumer spending increased solidly in October and manufacturing has been buoyant. The trade deficit narrowed sharply in October as exports surged to a record high and businesses have been steadily rebuilding inventories. The unemployment rate is at a 21-month low of 4.2%.</p>\n<p>According to a Reuters survey of economists, growth this year could come in at 5.6%, which would be the fastest since 1984. The economy contracted 3.4% in 2020.</p>\n<p>But the emerging winter wave of coronavirus infections, driven by the Delta and highly the contagious Omicron variants, could significantly restrain growth starting in the first quarter. 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That was up from the 2.1% pace estimated last month but was still the slowest since the second quarter of 2020, when the economy suffered a historic contraction in the wake of tough mandatory measures to contain the first wave of coronavirus cases.\nEconomists polled by Reuters had forecast third-quarter GDP growth unrevised at a 2.1% pace. The economy grew at a 6.7% rate in the second quarter.\nLast quarter's slower growth pace also reflected shortages of motor vehicles amid strained global supply chains as well as a decline in pandemic relief money from the government to businesses, households and state and local governments.\nGrowth was also hampered by Hurricane Ida, which devastated U.S. offshore energy production at the end of August.\nThe economy has, however, regained speed. Consumer spending increased solidly in October and manufacturing has been buoyant. 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