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US economy grows 7.4 % in Sept quarter after Covid-induced plunge

The figure topped economists' estimates for a 32% increase, which was already well above forecasts three months ago for an 18% gain

The U.S. spends the most money on advertising in the world. Marketing and advertising spending in 2020 is projected to reach nearly $390 billion. Dan Mewing/Moment via Getty Images

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Personal spending has fueled the surge in growth

3 min read Last Updated : Oct 30 2020 | 12:21 AM IST

The US economy bounced back with a record yet temporary surge of growth in the third quarter as businesses reopened and stimulus cash powered consumer spending, reversing much of the collapse stemming from coronavirus-enforced lockdowns.

Just as the second-quarter plunge in output was the biggest in seven decades of data, so too was the third-quarter rebound: Gross domestic product grew 7.4%, a quarterly gain that equals an annualized pace of 33.1%, the Commerce Department’s initial estimate showed Thursday.

The figure topped economists’ estimates for a 32% increase, which was already well above forecasts three months ago for an 18% gain.

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