U.S. Economy Experiences Slowdown In Growth During 3rd Quarter
The U.S. economy maintained a slow growth rate during the third quarter.
The Commerce Department released preliminary data showing that the U.S. economy grew by 1.9% during the third quarter. Some believe that the slow growth rate is a result of the current trade war with China and an overall global economic slowdown.
However, others are not too worried because consumer spending remains solid. While businesses slow down investment, consumer spending has maintained its footing. Although consumer spending fell to 2.9% from 4.6% in the previous quarter, the current consumer spending growth rate is still seen as strong. Residential investment also increased, which was seen as particularly positive given that it had been declining in previous quarters.
Business investment is reaching new lows. Business development includes research and development as well as buildings and equipment. During the last quarter, that particular metric experienced a drop in 3%.
The six-week strike at General Motors is seen as one of the major factors affecting the slowdown in economic growth during this past quarter. Additionally, Boeing’s current scandal involving two separate crash incidents of their 737 Max has also aided in the overall economic slowdown.