WASHINGTON–The U.S. economy grew faster than many analysts expected in the third quarter, but it slowed slightly from the second quarter as the result of declining business investments.
New data from the Commerce Department show U.S. GDP grew at an annualized rate of 1.9% in the third quarter, down slightly from the 2% in Q2.
“The downshift in economic growth comes as trade uncertainty and fears of a manufacturing slowdown sap private business investment in the United States,” noted MSNBC in its analysis of the numbers. “The White House’s aggressive trade tactics, especially the back-and-forth tariff battle between the U.S. and China, have been a drag on business sentiment, with executives expressing concern, both in surveys and earnings calls.”
The Commerce Department numbers show business investment declined at a 1.0% annualized rate in the second quarter, at the time the steepest decline since the fourth quarter of 2015. The number was pulled down by an 11.1% rate of decline in spending on structures, and a more modest slip in residential investment, added MSNBC.
Retail Sales Drop
The Commerce Department had reported earlier in the month that retail sales dropped 0.3% in September as households slashed spending on building materials, online purchases and especially automobiles. The decline was the first since February.
Auto sales fell 0.9% in September, the most in eight months, while receipts at service stations fell 0.7% in what likely reflects cheaper gasoline, added MSNBC.