The economy of US had grown at the annualized rate of almost 3.5%, by the third quarter in the year 2018. It was revealed in the data released by the government officials. Strong Consumer spending and Government spending are responsible for boosting economy, it claimed by Commerce Department of US. But decline in the exports figures, had resulted into low economic growth. Earlier this year reported surge in the shipments.
Economists had predicted growth rate of 3.3%. The gain of 3.5% marked the slowdown from the pace of 4.2%. However it shows allover improvement in the economic growth.
The analysts of Well Fargo have stated that the growth rate has come down during the third quarter, and they have forecasted that it will further comedown in the coming quarters. However, allover picture drawn by economists is rosy. The economy can be expected to grow by about 3% in the year 2018, which is undoubtedly going to be the fastest rate in almost a decade.
The pickup has started to come as the rates of unemployment hover near the record lows as well as the government policies, for the including the tax cut off $1.5tr, along with the expanded budget of the military and fuel spending.
In quarter three, the spending of the consumers, which is almost more than 2/3rd of the output, started growing at the rate of 4% annually. Overall, the GDP in quarter three was up by 3% as compared to a similar period in the year 2017.The commerce department has also reported that there were signs that the growth of the environment was weakening. The investment of the business started increasing at less than one percent annually, and there was a drop of 4% in the housing expenditures. Goods exports fell by almost 7% after there was a spike of 13.5% previously.
This decline was responsible for implying a number of duties on the products made by Americans, which was put to effect in summer 2018, as prompted by the US tariffs on aluminum and foreign steel, and Chinese goods that were worth billions of dollars.