US Economy records highest ever increase

US Economy records highest ever increase

As we round the corner into the last lap of the US Presidential election, it’s probably the best news that Donald Trump could have hoped for in the pursuit of every last vote prior to today.

It’s an election that has very much been called in favour of Joe Biden but if there’s any lesson that should have been learned from 2016 it’s that anything can happen.

Consider anything but US politics experts, but it can’t be considered anything other than great news for a beleaguered President that relies on a strong economic record as the backbone of his campaign, but if we dig into that data a little further, does it tell the story of a heavyweight stepping back into the ring, or a lightweight that’s acting a little punch

There’s no clear answer to that given the unprecedented times we’re living in and world economies reeling from the impact of the Coronavirus pandemic, but it adds to a number of encouraging signs that the major economies are weathering the storm, if not yet hitting clear waters.

There was initial panic back in May and June when unemployment numbers looked extremely concerning, but there were figures posted in July and August that showed a really strong recovery in terms of new jobs created.

The question is then, is this a sustainable return to growth? And how does that effect other economies?

GDP record growth

As reported by CNN in the US, GDP growth hit a staggering 33.1% annualised growth rate for quarter 3, showing a real recovery in many parts of the largest economy in the

As stated in the report ‘The US economy in the summer recovered much of the historically enormous ground it lost in the spring, expanding at the fastest rate on record in the third quarter, the Commerce Department reported Thursday.

The third quarter, however, was one for the record books. Gross domestic product — the broadest measure of economic activity — grew at an annualized and seasonally adjusted rate of 33.1% between July and September. This was a faster rate of expansion than economists had predicted.’

They’re some pretty impressive results by any measure, and at first glance it appears to encompass most industries and sectors within the economy. The hope is that this is signalling a strong recovery, but concerns linger as infection rates start to creep up again across the country.

The UK and Europe

Europe isn’t in anywhere near as strong a position as the US, and this could broadly be put down to the fact that they share the Euro currency and, to some extents, a common monetary policy. This makes it difficult to put together a response that caters for individual economies.

In the UK, this isn’t the case and whilst there has been unprecedented government spending and dips in GDP and shares, the view shared by many economists is that the UK economy has fared reasonably well and will continue to do so.

As we’ve been writing for weeks, one of the huge bright spots within that performance has been the UK property market which remains extremely strong and robust.

Still in impressive growth, the market is seeing prices as well as yields and capital gains all going up despite the ongoing pandemic and economic measures.

Investors across the world have sat up and taken notice of this, and it seems have been pouring money into the UK market, which has driven demand up for limited property, increasing prices. What we can say is that when the US economy performs well it tends to take other Western economies with it, and if this is how UK property performs under stress, then it’s easy to see a very good 2021 for investors.

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