U.S. Economy Set to Pick Up Speed After Delta-Driven Downturn
The Delta variant of Covid-19 appeared to temper economic growth this summer, but economists expect the recovery from the pandemic to reaccelerate as the virus’s toll eases.
In recent weeks, many economists lowered their forecasts for third-quarter economic growth in large part because consumers slowed spending on meals out, hotels and airline tickets amid the spread of the highly contagious Delta variant. The Covid-19 surge also complicated office and school reopenings, turning what had been expected to be a September boom into a downturn.
Supply constraints—including product and worker shortages—were also more severe than many analysts earlier anticipated, contributing to downgrades in growth expectations.
Forecasting firm IHS Markit projected in late September that gross domestic product would grow at a 3.6% annual rate in the third…