WORLD US economic growth in Q3 revised down to 3.4 pct

WORLD

US economic growth in Q3 revised down to 3.4 pct

Xinhua

00:46, December 22, 2018

WASHINGTON, Dec. 21 (Xinhua) - The US economic growth in the third quarter was revised down to an annual rate of 3.4 percent, from the previously reported 3.5 percent, the US Commerce Department said Friday in its third estimate.

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The downward revision for the gross domestic product (GDP) growth in the third quarter reflected weaker personal consumption expenditures and exports, partly offset by a stronger private inventory investment, the department said.

The latest estimate showed consumer spending, which accounts for more than two-thirds of US economic output, grew at an annual rate of 3.5 percent in the third quarter, compared with the estimated 3.6 percent as released in November.

In the second quarter, the GDP of the United States increased 4.2 percent.

Despite a robust growth in the past six months, analysts forecast a slowdown in the US economy in the fourth quarter and beyond. Forecasting firm Macroeconomic Advisers last month estimated a growth rate of 2.5 percent in the fourth quarter.

The Federal Reserve expected the US economy to grow at 3 percent this year, a bit lower than 3.1 percent estimated in September, according to its latest economic projections released on Wednesday.

The Fed also lowered its 2019 growth forecast from 2.5 percent 2.3 percent.

Goldman Sachs said last month that the US GDP growth will slow to below 2 percent in the second half of 2019, as the Fed 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 US economic growth, analysts said.  

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