U.S. economic growth unrevised at 3.5 pct in Q3

Source: Xinhua | 2018-11-29

The U.S. economic growth in the third quarter was unrevised at an annual rate of 3.5 percent, down from 4.2 percent in the previous quarter, the U.S. Commerce Department said on Wednesday in its second estimate.
The increase in the gross domestic product (GDP) in the third quarter was unchanged from the "advance" estimate issued in late October, reflecting slightly stronger corporate spending and private inventory investment than previously reported, which were offset by weaker consumption spending and state and local government spending, the department said.
Wednesday's estimate showed consumer spending, which accounts for more than two-thirds of U.S. economic output, grew at an annual rate of 3.6 percent in the third quarter, compared with an earlier estimate of 4 percent.
Business investment, meanwhile, was stronger in the third quarter than originally estimated, with fixed nonresidential investment expanding at an annual rate of 2.5 percent, up from an earlier estimate of 0.8 percent.
Despite a robust growth in the past six months, analysts are forecasting a slowdown in the U.S. economy in the fourth quarter and beyond. Forecasting firm Macroeconomic Advisers on Wednesday estimated a growth rate of 2.5 percent in the fourth quarter.
The Federal Reserve in September forecast that the U.S. economy would grow at 3.1 percent this year. It also projected the growth pace to cool in 2019, with an expected expansion of 2.5 percent.
A group of 10 economists have an average forecast of 2.4 percent for U.S. economic growth in 2019, and some foresee a recession by 2020, according to a CNBC survey released last week.
In a more pessimistic view, JP Morgan economists said earlier they expected the U.S. economy to grow at a pace of 1.9 percent in 2019. Goldman Sachs said U.S. GDP growth will slow to below 2 percent in the second half of 2019, as the Federal Reserve continues to raise interest rates and the effects of corporate tax cuts fade.
A stronger dollar and tariffs are also among the factors that could drag down U.S. economic growth, analysts said.