us economy grew 21 in third quarter
Last Updated : GMT 01:03:47
Arab Today, arab today
Arab Today, arab today

US economy grew 2.1% in third quarter

Arab Today, arab today

Arab Today, arab today US economy grew 2.1% in third quarter

US GDP rose at an annual rate of 2.1%
Washington - AFP

The US economy grew more strongly than first thought in the third quarter on higher investments in businesses and housing that offset a bit less momentum in key consumer spending.

In the July to September quarter, gross domestic product -- the broad measure of the economy's output of goods and services -- expanded at a 2.1 percent annual pace, the Commerce Department said.

GDP growth in the quarter was initially estimated at 1.5 percent, and though now seen stronger, it still marked a slowdown from the robust 3.9 percent expansion in the second quarter.

The upward revision was slightly higher than analysts expected, but overall the fresh data was less positive. The revision was largely due to a smaller decrease in private inventory investment from the second quarter than previously estimated, which offset downward revisions, notably to consumer spending.

The report came three weeks before the Federal Reserve holds its final monetary policy meeting of the year. Market expectations are high that the Fed will raise its benchmark interest rates on December 16 from near zero, where they have been pegged since December 2008 to support the economy's recovery from the Great Recession.

"Bottom line: Stronger growth but a weaker mix, with the biggest changes in inventories, revised up, and consumption, revised down," said Chris Low of FTN Financial.

"From the Fed's perspective, the revision doesn't mean much. It's strong enough to allow a rate hike, but not strong enough to demand one," Low said.

- Plow-horse economy -

Though growth has been volatile this year, with only a 0.6 percent rise in the first quarter, the overall pace has been that of a plow-horse economy, plugging along despite a global slowdown.

Consumer spending, which drives about two-thirds of the activity in the US economy, rose 3.0 percent in the third quarter, a notch less than the 3.2 percent previously estimated.

Business investments grew 2.4 percent, three tenths more than previously estimated. Investments in housing jumped 7.3 percent, revised up from 6.1 percent.

The Obama administration highlighted the growth in investment in the housing market, one of the bright spots of the economy.

"Over the past four quarters, residential investment has grown 9.2 percent -- the strongest four-quarter growth rate since the bounce-back from the financial crisis in 2012 and 2013," said Jason Furman, head of the president's Council of Economic Advisers.

"Housing demand is expected to continue to strengthen as household formation rises, credit availability improves, and the labor market continues to strengthen."

Exports were weaker than previously thought, rising only 0.9 percent after a 5.1 percent jump in the second quarter.

By contrast, imports, which represent a drag on GDP growth, increased 2.1 percent as the stronger dollar kept import costs relatively low.

Inflation has remained muted amid the recovery, in part due to falling oil prices. The personal consumption expenditures price index, closely watched by the Fed, rose at an annual rate of 1.3 percent in the third quarter.

That was a tenth point higher than previously estimated, but inflation nevertheless remained well below the central bank's target of 2.0 percent for price stability.

"The details of the revision to GDP made the composition a bit less favorable, but even a 2.7 percent pace for real final sales is solid. We continue to forecast a 2.7 percent pace for overall real GDP in Q4," said Jim O'Sullivan, chief US economist at High Frequency Economics.

The government will publish its final estimate for third-quarter GDP on December 22, a week after the Fed's December 15-16 meeting.

The central bank has forecast US economic growth of 2.1 percent in 2015, cooling somewhat from the 2.4 percent expansion in 2014.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

us economy grew 21 in third quarter us economy grew 21 in third quarter

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

us economy grew 21 in third quarter us economy grew 21 in third quarter

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Banyan Tree Phuket Takes Festive Season

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Top Democrat faces investigation

GMT 09:50 2017 Friday ,17 November

Top Democrat faces investigation
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Angola oil boss sacked by father's protege

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Urban, young and active?

GMT 11:01 2017 Thursday ,16 November

Urban, young and active?
Arab Today, arab today Ayten Amer happy for “The Flood” success

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success
Arab Today, arab today Unloved vultures fight for their survival

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 08:21 2017 Tuesday ,14 November

Nelly Karim focuses on humanitarian roles

GMT 09:23 2017 Wednesday ,15 November

Years melt away as Bening & Bell play unlikely lovers

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 13:40 2017 Monday ,13 November

Pollution spikes in Delhi amid warnings

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 10:55 2017 Thursday ,16 November

UN warns fuel running out

GMT 01:04 2017 Wednesday ,15 November

In Morocco, a blue tourist town

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday