The U.S. economy grew at an annual rate of 1.9% during the July-September quarter, according to The Washington Post. This followed the second quarter’s 2% growth rate.
The data came as economists anticipated slightly weaker growth following President Trump’s decision to expand his trade war with China in August, which deterred some business leaders from making major investments during that time.
Consumer spending is a major contributor to economic growth, but business investment has contracted for six straight months, falling 3% during the third quarter—the biggest drop since the end of 2015.
Although the consensus view is the economy is shifting to a lower gear, the sustained pace reportedly suggests a recession is unlikely anytime soon. Low unemployment, rising wages and high stock prices have boosted consumer spending. Higher federal government spending also fueled growth and helped offset the business investment decline.
