Michael Feroli, JP Morgan Chief U.S. Economist weighs in on today's GDP report and the economic outlook amid coronavirus concerns and stimulus uncertainty. U.S. economic activity surged at a record clip for the July through September period, as an initial easing of virus-related lockdowns allowed business activity to return after a historic slump. The Bureau of Economic Analysis released its advance print on third-quarter gross domestic product (GDP) at 8:30 a.m. ET on Thursday. Here were the main metrics from the report, compared to consensus estimates compiled by Bloomberg: 3Q GDP, annualized quarter-over-quarter: 33.1% vs. 32.0% expected, -31.4% in the second quarter 3Q Personal Consumption: 40.7% vs. 38.9% expected, -33.2% in the second quarter 3Q GDP Price Index: 3.6% vs. 2.9% expected, -1.8% in the second quarter 3Q Core Personal Consumption Expenditures, quarter-over-quarter: 3.5% vs. 4.0% expected, -0.8% in the second quarter Prior to the pandemic period, the largest-ever quarterly rise in GDP had been a 16.7% annualized increase in 1950. The rise in third quarter 2020 economic activity was nearly twice that, with the record jump following the record 31.4% slide earlier this year. The advance came primarily from strength in personal consumption, which comprises about two-thirds of domestic economic activity. Personal consumption rose a better than expected 40.7% in the third quarter on an annualized basis, after dropping 33.2% in the second. That dynamic has been evident in the monthly retail sales report, which grew in each of the past five months ending in September. A boost from Washington’s first round of $1,200 stimulus checks and weekly $600 in augmented federal unemployment benefits still had a lingering effect on consumer spending at the beginning of the third quarter, helping keep expenditures on products robust even as spending on travel and other services stayed low. While consumption led the gain in third-quarter GDP, gains were still broad-based across the economy, as the areas hardest hit earlier on during the pandemic rebounded. Residential investment added 2 percentage points to the headline jump in GDP after subtracting 1.6 percentage points in the second quarter, with a boom in housing market activity over the summer contributing to gains. Nonresidential fixed investment also contributed positively to GDP as equipment spending by businesses improved, although structures investment subtracted from headline GDP. The yawning trade deficit also dragged on GDP by about 3.1 percentage points as imports outpaced exports, with the pandemic weighing heavily on global commerce. Government expenditures pulled down GDP by about 0.7 percentage points. #GDP #economy #economicoutlook Subscribe to Yahoo Finance: https://yhoo.it/2fGu5Bb About Yahoo Finance: At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life. About Yahoo Finance Premium: With a subscription to Yahoo Finance Premium, get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundamental analysis, enhanced charting, and more. To learn more about Yahoo Finance Premium please visit: https://yhoo.it/33jXYBp Connect with Yahoo Finance: Get the latest news: https://yhoo.it/2fGu5Bb Find Yahoo Finance on Facebook: http://bit.ly/2A9u5Zq Follow Yahoo Finance on Twitter: http://bit.ly/2LMgloP Follow Yahoo Finance on Instagram: http://bit.ly/2LOpNYz Follow Cashay.com Follow Yahoo Finance Premium on Twitter: https://bit.ly/3hhcnmV