Confident consumers kept the U.S. economy humming along in the third quarter, spending more than enough to counter a big drop in business investment tied to falling oil prices and the ongoing trade war with China.
Gross domestic product, the official scorecard for the economy, grew at an 1.9% annual pace in the third quarter, the government said Wednesday.That’s down just a tick from 2% growth in the spring.
Wall Street had braced for an even steeper decline. Economists polled by MarketWatch had forecast GDP to taper to 1.6%.
GDP is the official measuring stick of the U.S. economy — and what it shows is steady if unspectacular growth.
While trade tensions have induced ingestion among businesses, consumers have mostly shrugged it off. Rising incomes, the ease of finding work and the lowest unemployment rate in 50 years have given consumers plenty of confidence to go about their lives and keep the economy moving along.
Source : MarketWatch