US economic growth slows to 2% in Q3, first reading shows

ANKARA

US economic growth slowed to an annual rate of 2% in the third quarter, according to the Commerce Department's advance estimate of a first reading of data Thursday.

The figure was well below market expectations of 2.7%. Real gross domestic product (GDP) increased 6.7% in the second quarter.

The world's largest economy contracted 31.4% in the second quarter of 2020, recovered 33.4% in the third quarter but shrunk 3.5% overall in 2020, marking its worst annual drop since 1946, due to the coronavirus pandemic.

GDP, based on the current dollar, increased $432.5 billion in the July-September period to $23.17 trillion, it said, adding it rose $702.8 billion in the second quarter.

Personal income increased $47.8 billion in the third quarter, in contrast to a decrease of $1.29 trillion in the second quarter, it added.

"The PCE [Personal Consumption Expenditures] price index increased 5.3%, compared with an increase of 6.5%. Excluding food and energy prices, the PCE price index increased 4.5%, compared with an increase of 6.1%." the statement said.