Trucks entering a Port of Oakland shipping terminal in Oakland, California last month. Prospects for a solid rebound going forward are being clouded by rising worries about Omicron. AP
Trucks entering a Port of Oakland shipping terminal in Oakland, California last month. Prospects for a solid rebound going forward are being clouded by rising worries about Omicron. AP
Trucks entering a Port of Oakland shipping terminal in Oakland, California last month. Prospects for a solid rebound going forward are being clouded by rising worries about Omicron. AP
Trucks entering a Port of Oakland shipping terminal in Oakland, California last month. Prospects for a solid rebound going forward are being clouded by rising worries about Omicron. AP

US economy grew at faster-than-forecast 2.3% in third quarter


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The US economy grew at a 2.3 per cent rate in the third quarter, slightly better than previously thought, the Commerce Department said on Wednesday.

But prospects for a solid rebound going forward are being clouded by the rapid spread of the Omicron variant of the coronavirus.

The third and final look at the performance of the gross domestic product, the nation's total output of goods and services, was higher than last month's estimate of 2.1 per cent growth in the third quarter.

The new-found strength came from primarily from stronger consumer spending than previously thought and businesses in rebuilding their inventories more than initial estimates revealed.

The 2.3 per cent third quarter gain follows explosive growth that began the year as the country began to emerge from the pandemic, at least economically. Growth soared to 6.3 per cent in the first quarter and 6.7 per cent in the second quarter.

The emergence of the Delta variant in the summer was blamed for much of the third quarter slowdown.

Now with the appearance of the Omicron variant, coming on top of high inflation and lingering supply chain issues, there are concerns about future growth prospects.

Those fears have sent the stock market on a turbulent ride in recent days although new optimism that the Omicron risks will be manageable allowed the Dow Jones industrial average to stage a 560-point rebound on Tuesday.

But many economists believe it is far too early to declare an all-clear on the threats posed by the new variant.

“History is repeating itself with the Covid virus suddenly reappearing and dampening economic growth prospects,” said Sung Won Sohn, an economics and business professor Loyola Marymount University.

A mobile Covid testing site in the Upper West Side neighbourhood of New York. Bloomberg
A mobile Covid testing site in the Upper West Side neighbourhood of New York. Bloomberg

Oxford Economics has trimmed its forecast for economic growth for the current quarter from 7.8 per cent to 7.3 per cent, which would still represent a sizable rebound from the slowdown seen in the third quarter.

Kathy Bostjancic, chief US financial economist for Oxford, said that not only Covid but also the dimming prospects for President Joe Biden’s $1.8 trillion spending plan to bolster social programmes and fight climate change were causing the forecasting firm to make downward revisions to its projections.

She said Oxford’s current assessment was that the resurgence of Covid could reduce growth next year from 4.3 per cent to 4.1 per cent and that if Biden’s Build Back Better programme is completely derailed, that could likely shave another 0.4 percentage points in 2022, lowering it to around 3.7 per cent and chop a half-point from growth in 2023, reducing it to below 2 per cent.

She said under these assumptions, job growth could be 750,000 lower by this time next year if economic growth slows as much as she fears.

“Omicron has been so rampant,” Ms Bostjancic said. “We think it is going to take a pretty toll on economic activity.”

And it is not just the resurgence of Covid that could hold the economy back next year. Inflation has spiked to the highest level in nearly four decades, prompting the Federal Reserve to start pulling back the massive amounts of support it has been providing to the economy as it switches from trying to boost job growth to fighting inflation.

The Bio

Name: Lynn Davison

Profession: History teacher at Al Yasmina Academy, Abu Dhabi

Children: She has one son, Casey, 28

Hometown: Pontefract, West Yorkshire in the UK

Favourite book: The Alchemist by Paulo Coelho

Favourite Author: CJ Sansom

Favourite holiday destination: Bali

Favourite food: A Sunday roast

Know your camel milk:
Flavour: Similar to goat’s milk, although less pungent. Vaguely sweet with a subtle, salty aftertaste.
Texture: Smooth and creamy, with a slightly thinner consistency than cow’s milk.
Use it: In your morning coffee, to add flavour to homemade ice cream and milk-heavy desserts, smoothies, spiced camel-milk hot chocolate.
Goes well with: chocolate and caramel, saffron, cardamom and cloves. Also works well with honey and dates.

Company info

Company name: Entrupy 

Co-founders: Vidyuth Srinivasan, co-founder/chief executive, Ashlesh Sharma, co-founder/chief technology officer, Lakshmi Subramanian, co-founder/chief scientist

Based: New York, New York

Sector/About: Entrupy is a hardware-enabled SaaS company whose mission is to protect businesses, borders and consumers from transactions involving counterfeit goods.  

Initial investment/Investors: Entrupy secured a $2.6m Series A funding round in 2017. The round was led by Tokyo-based Digital Garage and Daiwa Securities Group's jointly established venture arm, DG Lab Fund I Investment Limited Partnership, along with Zach Coelius. 

Total customers: Entrupy’s customers include hundreds of secondary resellers, marketplaces and other retail organisations around the world. They are also testing with shipping companies as well as customs agencies to stop fake items from reaching the market in the first place. 

The specs

Engine: 3.9-litre twin-turbo V8

Transmission: seven-speed

Power: 720hp

Torque: 770Nm

Price: Dh1,100,000

On sale: now

UAE currency: the story behind the money in your pockets
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Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

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Updated: December 22, 2021, 3:05 PM