DECEMBER 2, 2019 – Q3 GDP GROWS 2.1 PERCENT
On Wednesday, the Commerce Department announced the July-September GDP growth rate grew at a moderate 2.1 percent, slightly above expectations of 1.9 percent. But economists think the fourth quarter will show a sharp decline.
The year started well with 3.1 percent GDP growth in the first quarter, but expectations are now for its slowing to below 1 percent for the last three months of this year, meaning annualized growth for 2019 will likely miss the Fed’s targeted 2.2 percent. The decline is mostly attributable to the US-China trade war that has resulted in lowered business inventories and investment. Economists are optimistic for the current holiday shopping season, as job growth has remained steady along with solid consumer spending. Economic growth in Q4 is dependent on the consumer.