US government reports better-than-expected economic performance

US government

US GDP for the 3rd quarter grew by 2.1%, exceeding expectations of 1.9% and 2% growth in the 2nd quarter. Consumer spending continues to rise moderately. The inflation rate, which is estimated by the Fed, was 1.7%, not reaching the goal of 2%. The data released by the government on Wednesday suggest that US economic growth accelerated somewhat in the third quarter, rather than slowing down, as originally reported, and there are signs improvements in business investment.

Economists carefully evaluate the published data in order to determine how the American economy behaves, the growth of which continues a record 11th year, and assess the impact of the protracted trade war with China.

Many technology companies have suffered from increased trade duties on Chinese products, and this year there is no such incentive as tax cuts by $ 1.5 trillion. last year.

On Monday, Fed Chairman Jerome Powell said he saw “generally good” conditions for the US economy, figuratively describing them as a “half full glass”. He said the central bank will continue to focus on meeting the inflation target of 2% and labor market indicators. More in the article “Powell’s comments make it clear that the Fed does not plan to reduce rates.

The stock market continues to grow, the main indices reached record highs. The dollar strengthened against a basket of currencies, while US Treasury bond prices fell.

The Department of Commerce has released new data, according to which the US gross domestic product (GDP) for the third quarter grew by 2.1% year on year. This is higher than the 1.9% estimate published a month earlier and higher than the 2% growth of the 2nd quarter. Economists forecast that GDP growth in the third quarter will remain unchanged at 1.9%.

At the same time, experts and Fed officials give optimistic forecasts regarding GDP growth in the 4th quarter.

For the first half of the year, GDP growth was 2.6%, but economists predict that the annual rate is unlikely to reach the Trump administration goal of 3.0%.

Despite optimistic data on growth, inflation remains restrained, which is a concern for the Fed. In September, the figure was 1.7%, not bringing closer to achieving the goal of 2% this year.

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Killian Jones

Author: Killian Jones
Graduated From Princeton University.He has been at the USTV since 2017.
Function: Chief-Editor

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