Q3 GDP estimate gets a slight upgrade to 33.4% growth

WASHINGTON » The U.S. economy expanded at a record 33.4% annual pace from July through September, the Commerce Department said Tuesday, delivering the last of three estimates on the economy’s third-quarter performance. But it’s likely that a resurgence in coronavirus cases slowed growth sharply during the last three months of 2020. The July-September growth spurt — upgraded slightly from Commerce’s previous estimate of 33.1%, announced last month -- marked a sharp recovery from the second quarter’s 31.4% drop, the worst in records dating back to 1947. The American economy went into freefall when the pandemic hit hard in mid-March.

Consumer spending surged at an annual rate of 41% and private investment shot up by 86.3%.