Overseas Headlines – October 29, 2020

United States:

U.S. Economy Expands at Record 33.1% Pace After Covid Plunge

“The U.S. 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.”



Recovery in Euro-Area Confidence Ebbs Even Before New Lockdowns

“The recovery in euro-area economic confidence came to a halt in October, before a resurgence of the pandemic forced tough new restrictions that are now threatening to pitch the region back into recession. A European Commission sentiment index held at 90.9 following five months of improvement. It reflects a weaker assessment in services and among consumers, and continued optimism in industry, retail and construction.”



China Pledges Quality Growth, Tech Powerhouse in 5-Year Plan

“China unveiled the first glimpses of its economic plans for the next five years, promising to build the nation into a technological powerhouse as it emphasized quality growth over speed. Initial details released by the Communist Party’s Central Committee Thursday stressed the need for sustainable growth and also pledged to develop a robust domestic market. The communique published by state media following a four-day closed-door meeting didn’t specify the pace of growth policy makers would target.”



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