According to the Atlanta Federal Reserve, the US economy could grow by 32% in the third quarter.
FRBATLATNA:
Latest estimate: 32.0 percent — September 17, 2020
The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2020 is 32.0 percent on September 17, up from 31.7 percent on September 16. After this morning’s housing starts report from the U.S. Census Bureau, the nowcast of third-quarter real residential investment growth increased from 39.3 percent to 46.1 percent.
Don Surber had a great analysis of what these numbers mean:
But Americans are a resilient people. That 32% collapse in the second quarter may matched in the third quarter with a 32% expansion.
The Federal Reserve Bank of Atlanta reported, “The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2020 is 32.0% on September 17, up from 31.7 percent on September 16. After this morning’s housing starts report from the U.S. Census Bureau, the nowcast of third-quarter real residential investment growth increased from 39.3% to 46.1%.”
This is an early report on the economy in July, August, and September. Heck, the third quarter is not over for another week.
And even if the growth in the third quarter matches as a percentage the shrinkage in the second quarter, we will be down slightly in those 2 quarters because of math. Also these are annualized rates, meaning the actual swing is 16 points, not 64.
But make no mistake, this is a very rapid recovery.
This would be great news for the U.S economy. If we see growth like this Americans can finally begin to feel like that there is a future after the Chinese Coronavirus.
There is an electoral boost here as well. One of President Trump’s best cases for re-election was the economy he built before the virus hit. If the economy grows by 32% that same case can be made again.
These numbers are going to come out right in time for the election. This could be a deciding factor on whether or not on the fence voters go for Trump or Biden.
The Palmieri Report is a Pro-America News Outlet founded by Jacob Palmieri two years ago at the age of 19. Since its founding, it has gotten over 2M pages views and over 20k followers. The Palmieri Report is dedicated to giving people the truth so that they can form their own informed political opinions.
