US economy grew at 3.5% in Q3

The US economy grew at a robust annual rate of 3.5 per cent in the third quarter of 2018, a latest official estimate said Friday.

During the past four quarters, the GDP has risen 3 cent, well above the 2.3 per cent growth during the year-earlier period. In the second quarter of 2018, real GDP increased 4.2 per cent, the Bureau of Economic Analysis said.

"Defying 'conventional wisdom' once again, 3.5 per cent growth is the latest sign that the Trump economy continues to surge," said Secretary of Commerce Wilbur Ross after the Bureau of Economic Analysis released the advance gross domestic product estimate for the third quarter of 2018.

The second GDP estimate for the third quarter (July-September) is scheduled to be released on November 28.

"The President's actions from deregulation to tax reform have supercharged the American economy, driving it to new heights," Ross said in a statement.

According to the Department of Commerce, the increase in real GDP in the third quarter reflected positive contributions from personal consumption expenditures, private inventory investment, state and local government spending, Federal government spending, and nonresidential fixed investment.

In addition, real consumer spending grew four per cent at an annual rate in the third quarter, substantially up from the 2.6 per cent pace during the preceding four quarters, it said.

Bureau of Economic Analysis said the increase in real GDP in the third quarter reflected positive contributions from personal consumption expenditures, private inventory investment, state and local government spending, federal government spending, and nonresidential fixed investment that were partly offset by negative contributions from exports and residential fixed investment.

Imports, which are a subtraction in the calculation of GDP, increased.

"The deceleration in real GDP growth in the third quarter reflected a downturn in exports and a deceleration in nonresidential fixed investment. Imports increased in the third quarter after decreasing in the second. These movements were partly offset by an upturn in private inventory investment," it said.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)