The U.S. economy grew at a record 33.1% annual rate in the July-September quarter. The Commerce Department’s estimate Thursday of third-quarter growth showed that the nation has regained only about two-thirds of the output that was lost early this year when the eruption of the virus closed businesses, threw tens of millions out of work and caused the deepest recession since the Great Depression. The latest GDP reading is the last major economic report before Election Day, after a campaign that President Donald Trump has sought to build around his economic record before the pandemic hit. Trump has drawn generally solid public support for his handling of the economy. On Thursday, the government also reported that the number of Americans seeking unemployment benefits fell slightly last week to 751,000. That was the fewest weekly applications since March. The government’s estimate of the third-quarter jump in the gross domestic product — the total output of goods and services in the United States — was the biggest such increase on records dating to 1947. In the January-March quarter this year, GDP had contracted at a 5% annual rate before a record-setting 31.4% annual tumble in the spring. The third quarter economic growth was powered by a record 40.7% annual increase in consumer spending. Americans began shopping again after the spring shutdown, which had sent consumer spending sinking by a record 31.4% annual rate. Consumer spending accounts for roughly two-thirds of economic activity. Business investment rose a strong annual rate 20.3%, reflecting a 70.1% surge in investment in equipment. Residential investment surged at a a 59.3% rate, reflecting a solid rebound being enjoyed by home builders as demand for homes rises. The government reports the quarterly GDP changes as annual rates. That means the change for any given quarter is calculated as if it had occurred for an entire year. Measured another way, GDP grew 7.4% from the April-June quarter to the July-September quarter, after tumbling 9% from the first quarter to the second and dropping 1.3% from last year’s fourth quarter to the first quarter this year. Overhanging the economy now are growing uncertainty and worry as a resurgence of the virus raises the prospect of new lockdowns and threatens the economy, especially without more federal help. That fear has burst into the open this week across global financial markets. On Wednesday, U.S. stock averages tumbled roughly 3.5%, with the Dow Jones Industrial Average shedding 943 points. A new wave of lockdowns and business closings has swept across France, Germany and elsewhere as surging viral infections on both sides of the Atlantic wipe out months of progress against the pandemic. In France, President Emmanuel Macron has declared a new nationwide lockdown starting Friday, saying the country has been “overpowered by a second wave.” In Germany, Chancellor Angela Merkel announced a four-week shutdown of bars, restaurants and theaters. In the United States, where nearly every state is suffering from a rise in cases, Gov. Tony Evers of Wisconsin, one of the hardest-hit states, has pleaded with people to stay home. Gov. J.B. Pritzker of Illinois has banned indoor dining and drinking in Chicago and limited the size of gatherings in response to a surge in cases. (AP)

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