US economy grew at a moderate 2.1% annual rate last quarter [View all]
Source: AP
The U.S. economy grew at a moderate 2.1% annual rate over the summer, slightly faster than first estimated, the government said Wednesday. But many economists say they think growth is slowing sharply in the current quarter.
The July-September growth rate in the gross domestic product, the economy’s total output of goods and services, exceeded the Commerce Department’s initial estimate of a 1.9% annual rate. A key reason is that businesses didn’t cut back on investment spending as much as first estimated.
The economy had begun the year with a sizzling 3.1% GDP rate, fueled largely by the now-faded effects of tax cuts and increased government spending. Many analysts have estimated that GDP growth is weakening in the current October-December quarter to a 1.4% annual rate or less. The most pessimistic forecasters foresee growth slowing to a sub-1% annual rate this quarter, largely because the U.S.-China trade war is causing businesses to reduce investment and inventories.
Still, the holiday shopping season is expected to be relatively healthy given solid job growth and consumer spending.
Read more: https://apnews.com/17c1023b42894f6caed3da623cb50918
Where's that 3+% growth rate Trump promised?
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