The U.S. economy expanded at a 3.5% pace in the third quarter as consumers opened their wallets, businesses restocked inventories and governments boosted spending, marking the strongest back-to-back quarters of growth since 2014.
The drag on GDP was the largest negative contribution to GDP growth for trade in 33 years - trade subtracted 1.91 points from GDP in the second quarter of 1985. "This is what happens when we pass policies to help American consumers, workers, and businesses generate economic growth and opportunity". But some private economists worry that the recent stock market declines could be a warning signal of a coming slowdown. Price data in the GDP report showed inflation at a 1.6% annualized pace last quarter, below the Fed's 2% goal.
Mick Mulvaney, head of the president's budget office, said in a CNBC interview that while business investment was flat this quarter, it followed several quarters when investment has been "fantastic". The number of corporations beating their sales estimates has been falling, adding another concern to the stock market.
On Friday, October 26, the US stock market fell again.
Moreover, the export growth is expected to be at between 8.72 percent and 9.08 percent, and the figure will reach between 9.08 percent and 10.02 percent in 2019, as well as, the import growth at between 16.99 percent and 17.13 percent in 2018, and it will decline to between 14.04 percent and 14.88 percent in 2019.
The economy is underpinned by a $1.5 trillion tax cut and increased government spending. The American economy looks like it will expand above a 3% rate in 2018.
Red Sox win World Series
If the Red Sox win: The series is over in only five games but more than enough innings to add up to at least six full ballgames. The first baseman hit.333 in the Series (4-for-12) with three home runs, 8 RBIs, a.500 OBP and a 1.167 slugging percentage.
Red Sox Release Lineup for Potential Game 5 Clincher
In the ninth inning, and with victory in sight, they even managed a shot at their old rivals as a "Yankees Suck" chant broke out. Those who actually stayed up for all 18 innings of Game 3 of the World Series may be among you right now.
Lion Air plane crashes in Indonesia
Indonesia's Lion Air said it has lost contact with a passenger jet flying from Jakarta to an island off Sumatra early Monday. Indonesia's AirNav has alerted the search and rescue crews. "We have forwarded the information to search and rescue teams".
"Every time we do something great, he raises interest rates", Trump said in an interview this week with the Wall Street Journal in which he again said he viewed the Fed as the "biggest risk" facing the economy "because I think interest rates are being raised too quickly".
U.S. consumption is being supported in part by a tightening labour market, characterised by an unemployment rate that is at a near 49-year low of 3.7%.
The latest GDP report also showed that investment spending on business plant and equipment and residential structures (homes, townhomes, condos, and apartments) actually fell from July through September.
The $1.5 trillion tax cut passed by Congress late previous year was one pillar of President Trump's plan to boost economic growth to the above-3% rate that marked the robust expansions of the 20th century. In the second quarter, real GDP increased 4.2 percent.
China's economic growth is expected to reach around 6.6 percent in 2018, according to a research report jointly released by Economic Information Daily, Xiamen University and University of London on Thursday. The third-quarter increase was broad-based and led by wholesale trade, particularly farm products, and manufacturing, according to the Commerce Department.
The third-quarter rate of business investment was the weakest since the fourth quarter of 2016.
Excluding the effects of trade and inventories, economists estimate GDP grew 2.8 percent in the third quarter compared to 4.0 percent in April-June. Those exports dropped in the third quarter and could continue to drop if the tariffs remain in place.