Did you get a tan?... Our old friend the US economy is looking much better than it did the last time we checked in on it. But it's not the Fenty concealer or the Maldives trip — it's the GDP (aka: the total value of all goods and services produced by a country over a period of time — aka: the economy).
- GDP grew at a 33.1% annualized rate in the 3rd quarter (July-September), the fastest ever. This rate shows how much GDP would grow over a year at the Q3 pace.
- In the previous quarter, GDP plunged at a worst-ever 31.4% annualized rate, shrinking 9% from Q1. So this is a serious rebound.
But everything is relative... and context is key. While the quick quarterly spike is impressive, the economy is still around 3.5% smaller than it was at the end of last year. TLDR: better than last quarter — still down overall.
It's likely slowing down from here... The stimulus injection that fueled last quarter's rebound has expired. The enhanced unemployment and federal checks boom is over, airline aid is gone, and negotiations for a 2nd stimulus still haven't come together. Until more financial help arrives, we can buckle up for another slowdown.