Washiongton, Oct 28 (AP) Hampered by rising COVID-19 cases and persistent supply shortages, the U.S. economy slowed to a 2per cent annual rate in the July-September period, the weakest quarterly growth since the recovery from the pandemic recession began last year.

Thursday's report from the Commerce Department estimated that the nation's gross domestic product — its total output of goods and services — declined sharply from the 6per cent-plus annual growth rates of each of the previous two quarters.

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But now, with confirmed COVID cases declining, vaccination rates rising and more Americans venturing out to spend money, many economists think GDP is bouncing back to a rate of 6per cent or even better in the current fourth quarter.

Airlines have reported growing passenger traffic, businesses are spending more on equipment and wages are increasing as employers struggle to draw more people back into the job market.

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A resurgence of consumer spending could help energize the economy as the year nears a close.

At the same time, though, rising prices, especially for gasoline, food, rent and other staples, are imposing a burden on American consumers and eroding the benefits of higher wages.

Inflation has emerged as a threat to the economic recovery and a key concern for the Federal Reserve as it prepares to start withdrawing the emergency aid it provided to the economy after the recession struck last year. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)