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U.S. economic growth slows much less than expected in Q3

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Christian Fernsby ▼ | October 30, 2019
U.S. economic growth slowed much less than expected in the third quarter, according to a report released the Commerce Department.

KEY POINTS
  • The stronger than expected GDP growth reflected positive contributions from consumer spending, government spending, residential fixed investment, and exports
  • Negative contributions from non-residential fixed investment and private inventory investment limited the upside along with an increase in imports, which are a subtraction in the calculation of GDP

U.S. business
America   The slightly slower GDP growth compared to the previous quarter
The Commerce Department said real gross domestic product increased 1.9 percent in the third quarter after climbing 2.0 percent in the second quarter. Economists had expected GDP growth to slow to 1.7 percent.

Topics: U.S. economic

The stronger than expected GDP growth reflected positive contributions from consumer spending, government spending, residential fixed investment, and exports.

However, negative contributions from non-residential fixed investment and private inventory investment limited the upside along with an increase in imports, which are a subtraction in the calculation of GDP.

The slightly slower GDP growth compared to the previous quarter reflected a notable deceleration in consumer spending, which increased 2.9 percent in the third quarter after spiking 4.6 percent in the second quarter.

Decelerations in federal and state and local government spending also contributed to the slower growth along with a larger decrease in non-residential fixed investment.

Meanwhile, smaller decrease in private inventory investment and upturns in exports and residential fixed investment helped to limit the slowdown.


 

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