And so it slows
The US economy barely scratched out a 2% real growth rate in the third quarter of 2019, as compared to the same 2018 period. The annualized, quarter-to-quarter headline figure was just 1.9%, the second slowest in three years. By both measures, GDP has been growing less quickly for three quarters in a row.
As capital investment evaporates (+0.2% YoY, the worst since Q-3 2016), private consumption expenditure (a mediocre +2.5%) has taken up the job of driving the economy. Residential investment fell 1% in Q-3, the seventh straight drop.
Exports (+0.1%) and imports (+0.8%) were positive, as was government spending (+2.3%). The GDP and PCE deflators remained steady, at +1.7% and +1.4%, respectively.
The US economy barely scratched out a 2% real growth rate in the third quarter of 2019, as compared to the same 2018 period. The annualized, quarter-to-quarter headline figure was just 1.9%, the second slowest in three years. By both measures, GDP has been growing less quickly for three quarters in a row.
As capital investment evaporates (+0.2% YoY, the worst since Q-3 2016), private consumption expenditure (a mediocre +2.5%) has taken up the job of driving the economy. Residential investment fell 1% in Q-3, the seventh straight drop.
Exports (+0.1%) and imports (+0.8%) were positive, as was government spending (+2.3%). The GDP and PCE deflators remained steady, at +1.7% and +1.4%, respectively.
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