US Economy Registers 3% Growth This Quarter
Despite two hurricanes devastating the country the economy has not slowed down but has risen by 3% as per the reports published by the Department of Commerce on Friday. The Irma and Harvey which shook the country and also caused a low hiring rare, but irrespective of that the economy grew by 3%, 0.5% more than what was forecasted. That can be attributed to consumers who with regular spending have helped in bettering the forecast for growth. Florida and Texas faced severe job losses as many as 33000 jobs in September and is a record for the most unemployment in seven years. These two storms were attributed as a reason for job losses as per labor department.
The area which was most impacted by the Hurricane Harvey was Houston and also holds the fifth position as the most significant metro city in the country. It also contributes to about 3% of the total economy. The dent to the economy on the GDP is not yet reported; the job losses were mostly attributed to the hurricane-related causes. As per the department of commerce, the hurricane impacted the business in those areas which include the oil, gas and agriculture sectors. The economists say that it is impossible to assess the overall damage the storms caused to the overall economy in the third quarter.
The economists say that it is heartening to know that the spending by customers which makes up 70% of the GDP increased by 2.4% this quarter. Had it not been for the storms the reports would have been much better. But the expenditure in business was good with income and investment increasing at a rate of 3.9%. The export sector saw a drop and only grew at 2.3%, the spending by the government also reduced by 0.1%.
Economists are pointing that sustaining this 3% increase may grow difficult as the U.S human resources are getting old and this impacting the productiveness.