GOODYEAR, ARIZONA - OCTOBER 28: U.S. President Donald Trump addresses thousands of supporters during a campaign rally at Phoenix Goodyear Airport October 28, 2020 in Goodyear, Arizona. With less than a week until Election Day, Trump and his opponent, Democratic presidential nominee Joe Biden, are campaigning across the country. (Photo …

Source: John Carney

The U.S. economy grew at the fastest pace ever recorded in the third quarter, expanding at an annualized pace of 33.1 percent, the U.S. government said Thursday.

The economic rebound means the U.S. recovered significant ground following the record-breaking collapse of output due to lockdowns intended to stem the spread of the coronavirus. Despite the third-quarter gains, the economy is still 3.5 percent smaller than it was as the year began.

Economists had expected the economy to grow 30.9 percent, according to Econoday. Some economists, however, had been expecting a bigger expansion following the release this week of positive data in recent news on durable good data and international trade. The Atlanta Fed’s GDPNow had third-quarter growth at 37 percent.

The standard formula for calculating GDP in the U.S. annualizes the quarterly changes, which can exaggerate the changes. Absent annualization, the economy grew at 7.4 percent in the third quarter, by far the biggest quarterly gain in records that began just after World War II. The previous record was 1950’s 3.9 percent gain.