US economy grew 2% on an annualised basis for the third quarter of the year, below economist expectations of 2.7%. This represented a significant slowdown from historic annual rates of 6.3% and 6.7% for the first and second quarters respectively. Q1 andQ2 both benefitted heavily from government stimulus, increased vaccination rates, as well as extensive business re-openings which fueled spending. Consumer spending rose just 1.6% in the third quarter, which was well below the12% rise in the previous quarter. The drop in auto sales, which have been hindered by semiconductor shortages, contributed to a26% decrease in spending on long-lasting goods. US consumers have shifted from goods consumption to services consumption, which climbed 7.9% in the second quarter, albeit at as lower pace than the previous quarter’s 11.5%gain.
Peregrine Wealth