Friday, 26 October 2018

US economy grew at annualised rate of 3.5% in third quarter of the year

The US economy grew at an annualised rate of 3.5% in the third quarter of the year, official figures have shown.

The US Commerce Department said strong consumer and government spending helped to bolster the economy.

But lower exports weighed on growth, after a surge earlier in the year as firms rushed shipments to beat tariffs.

The 3.5% gain marked a slowdown from the 4.2% pace in the second quarter, but was better than the 3.3% expansion economists had predicted.

"Growth downshifted a bit in Q3 and we look for some further slowing in the quarters ahead," analysts at Wells Fargo wrote.
"That said, the US economy continues to grow in excess of the rate that most analysts consider to be its long-run potential growth rate."

The US economy is expected to grow at about 3% in 2018 - which would be the fastest rate in more than a decade.

The pick-up comes as unemployment rates hover near record lows, and government policies, including a $1.5tr tax cut and expanded military budget, fuel spending.

In the third quarter, consumer spending - which accounts for more than two thirds of output - grew at an annual rate of 4%. That was up from a rate of 3.8% recorded in the previous quarter

BBC     News.

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