"We are expecting a small positive but the stage is set for 1st quarter contraction given the absence of additional fiscal stimulus and threat of untenable surge in cases and hospitalizations," Diane Swonk of Grant Thornton said on Twitter.
Consumers and businesses had been buoyed by the $2.2-trillion CARES Act passed earlier this year. It expanded unemployment payments and offered loans and grants to small businesses. Personal consumption expenditures slowed, growing just 0.5%, though that was slightly better than analysts' forecast, and the savings rate fell a full point to 13.6%.
The Commerce Department reported that trend continuing in October, with new home sales at a seasonally adjusted annualized rate of 999,000, slightly less than in September but way above the previous year.
Republicans have a history of leaving behind a tattered state of domestic affairs every time they leave office. And then sit back and dare the Democrats to fix it. The cycle never ends.