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NEW YORK, Aug. 28 (Xinhuanet) – The US economy has recorded annual growth of 3.5% in the third quarter of this year, AP reported.
According to the preliminary estimate of the gross domestic product (GDP) of the US Department of Commerce for the third quarter of this year, the US economy grew by 3.5% between July and September, compared with 4.2% in the second quarter.
US growth is expected to exceed 3% this year for the first time since 2005. Indeed, consumer sentiment within households remains strong as the job market is dynamic. The current unemployment rate represents only 3.7% of full employment. Consumer spending in the third quarter rose 3.6% from one year to the next.
Given the potential growth of 2% for economists in the United States, the growth rate in the third quarter is quite high. But experts are worried about the appearance of signs of slowing growth in the United States.
China's trade surplus with the trade war between the two countries increases the US tariff rate, which increases business uncertainty and increases inventories. The recent decline in oil prices has also contributed to the contraction of investments in energy production facilities.
Donald Trump's tax reduction policy is expected to eliminate economic stimulus as of next year. The rate hike by the Federal Reserve (Fed) is also a factor in slowing growth.
JPMorgan expects US economic growth to slow to 2.5% in the fourth quarter and to 2.2% in the first quarter of next year.
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