The Commerce Department on Wednesday said economic activity in the U.S. grew at an annualized rate of 1.9% in the third quarter, down slightly from the 2% pace in the second quarter. Economists polled by Dow Jones had expected the economy to grow at a 1.6% rate. CNBC reports:
The better-than-expected print was the result of continued consumer spending as well as government expenditures, the government report said. Personal consumption expenditures, a gauge of spending by American households, rose at a 2.9% annualized rate while government spending grew at a 2% rate.
Imports, which are a subtraction in the calculation of GDP, increased during the third quarter. The most recent report on the U.S. trade deficit showed the imbalance at $54.9 billion at the end of August as imports outpace exports in the last full month of summer.
Growth in gross private domestic investment, however, continued to decline in the three months ended September 30 with a read of -1.5%, but far better than the -6.3% contraction in the second quarter.