Crash: Economy Slows to Meager 2% Growth, the Worst Since the Start of Covid Recovery

The worst quarter of recovery -- anemic though it is -- since the economy actually contracted by about 28% for one quarter only in 2020, in the very beginning of worldwide pandemic panic and lockdowns, before roaring back the next quarter.

Obama specialized in quarters of 2% growth which he always claimed were signs of "green shoots" and the next "Recovery Summer."

81 million people, allegedly voted for the third term of Obama, and NeverTrump propagandized for the third term of a president they claimed to oppose.

Well, now they've got it. Here's your third term of Obama.

"Very disappointing," analysts say.

I'm sure this is all very unexpected to them.

Investors got some disappointing news about the economic rebound Thursday when the U.S. Commerce Department reported third-quarter GDP growth that fell short of economist expectations.

What Happened? U.S. GDP grew just 2% in the third quarter, short of economist estimates of 2.8%. Third-quarter growth represented the slowest rate since the pandemic recovery began.

Don't worry though, Business Insider says -- it only "seems discouragingly low," but in fact gives us a "clearer picture" about how external events, and definitely not the Biden Administration, are to blame for this near-collapse.

The third-quarter headline number may seem discouragingly low, but it gives investors a clearer picture of just how much of an impact supply chain disruptions, labor shortages and the delta variant of COVID-19 had on the economy in the third quarter.

Consumer spending in the quarter was up just 1.6% from a year ago after gaining 12% in the second quarter. Spending on goods dropped 9.2% in the quarter, but services spending grew 7.9%.

The U.S. trade deficit also widened to a near-record $73.3 billion, weighing on growth.

See? Nothing there has anything to do with falls in consumer confidence due to out-of-control inflation, or people's doubts that the economy will be better next year.

And of course the near-record trade deficit has nothing to do with China Joe reversing Trump's course on trade.

Also, don't worry, because the same analysts who missed their forecasts this quarter are predicting big growth in the next quarter.

The GDP number was certainly disappointing, but there was a perfect storm of temporary circumstances weighing on growth in the third quarter that should potentially improve in the fourth quarter and beyond.

Temporary circumstances. One might even call them "transitory" circumstances.

Breitbart says the analysts' consensus was 2.9% -- and notes that prior estimates were even higher, before forecasters started Lowering Expectations (as the left urges the country to Lower Our Expectations and accept the New Normal).

The third-quarter GDP growth was initially forecast to be even more robust. As late as June, analysts were forecast growth of seven to better than nine percent. But the surge in virus cases, stronger than expected inflation, and supply bottlenecks dragged the economy down to a much slower pace.

From 9% to 2%. Oh well, Biden Happens! Same Biden, Different Day.

Consumer spending climbed just 1.6 percent in the third quarter, a big deceleration from the 12 percent pace of growth in the prior quarter. That was driven by the lack of durable goods sought by consumers and a fumbled handoff from goods to consumer spending as many Americans canceled travel plans and cut back on things like eating out at restaurants thanks to the Delta variant.

Again, none of this could possibly be blamed at Biden's and Blue State's overreaction to every covid uptick. This is all Very Organic, Totally Expected (even if Unexpected) and Not At All Due to Government Policies.

And not due to, say, permitting 70 cargo container ships holding 50,000 cargo containers to pile up outside of California before finally noticing it and recalling Pete Bootyjudge from his 2+ plus month Secret Vacation.

posted by Ace at 03:25 PM

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