G.D.P. Grew at 1.9% Rate in Quarter, a New Sign of Slowdown [View all]

[BumRushDaShow]

Source: New York Times

Dogged by uneasiness over trade frictions and weak global growth, the American economy continued to slow over the summer. Gross domestic product -- the broadest measure of goods and services produced in the economy -- grew at a 1.9 percent annual rate for the third quarter, according to preliminary data released by the Commerce Department on Wednesday. Wall Street analysts had forecast a gain of 1.5 percent.

The year started out with a surge, but the pace of growth declined in the spring and again over the period that spanned July, August and September, the first time in a decade that the growth rate has fallen for two consecutive quarters.

Policymakers at the Federal Reserve are expected to end their two days of meetings in Washington on Wednesday afternoon with an announcement that the central bank will again drop its benchmark interest rate to prevent a slowdown from turning into a slide.

"We are expecting the Fed to lower rates," said Lydia Boussour, senior United States economist at Oxford Economics. "I think there is a stronger case now than just a few months ago."

Read more: https://www.nytimes.com/2019/10/30/business/economy/gdp-economy.html

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Original article/headline -

U.S. economy strained in third quarter, growing just 1.9% as investors await key news on jobs and interest rates this week

By Washington Post Staff
Oct. 30, 2019 at 8:32 a.m. EDT

Growth and business investment are under close scrutiny this year as companies deal with trade war uncertainty and politicians prepare for the 2020 elections.

This is a developing story. It will be updated.

https://www.washingtonpost.com/news/business/wp/2019/10/30/u-s-economy-strained-in-third-quarter-growing-just-1-9-as-investors-await-key-news-on-jobs-and-interest-rates-this-week/

Updated WaPo article -

U.S. slowdown deepens as economic growth slips to 1.9 percent pace in third quarter

By Heather Long and Andrew Van Dam
Oct. 30, 2019 at 8:39 a.m. EDT

The U.S. economy cooled over the summer, growing at a 1.9 percent annualized pace from July through September, the Commerce Department reported Wednesday, the latest sign that the slowdown is deepening.

Economists anticipated weaker growth after President Trump announced a dramatic expansion of his trade war in early August, spooking business leaders and deterring them from making major investments during a period of so much uncertainty. Consumer spending continues to power the economy, but business investment has slipped sharply, falling 3 percent in the third quarter, the weakest since the end of 2015.

Slow growth abroad and problems at big employers such as Boeing and General Motors also were a drag on growth. Tens of thousands of workers went on strike at GM in September, halting most production at the company. And Boeing, the U.S.'s largest exporter, remains under pressure after two fatal crashes of its 737 Max jets in the past year.

After revving to 2.9 percent growth in 2018, the U.S. economy appears to be settling into the slower pace than it notched during the final year of the Obama administration. Trump vowed during his presidential campaign that he could boost the economy to around 4 percent growth, a level not seen in years. He promised at least 3 percent growth a year, an annual pace he has yet to achieve.

https://www.washingtonpost.com/business/2019/10/30/us-slowdown-deepens-economic-growth-slips-percent-pace-third-quarter/