33.9 F
Fort Worth
Monday, November 30, 2020
Banking U.S. economy grew at strong 3.5 pct. annual rate last quarter

U.S. economy grew at strong 3.5 pct. annual rate last quarter

Other News

Left for dead, twice, RadioShack gets another shot online

SILVER SPRING, Md. (AP) — RadioShack, a fixture at the mall for decades, has been pulled from brink of death, again. It’s the most prized...

JC Penney sees bankruptcy protection exit by Christmas

NEW YORK (AP) — J.C. Penney believes it will emerge from bankruptcy protection before Christmas under a new ownership agreement that would save tens...

Petalo, not Charmin: Virus brings Mexican toilet paper to US

By JOSEPH PISANI AP Retail Writer NEW YORK (AP) — Toilet paper is back on store shelves. But you may not recognize some of the...

Mall owners close to buying JC Penney out of bankruptcy

By ANNE D'INNOCENZIO AP Retail WriterNEW YORK (AP) — Mall owners Simon Property Group and Brookfield Property Partners are close to a deal to...

WASHINGTON (AP) — The U.S. economy grew at a 3.5 percent annual rate in the July-September quarter, the fastest pace in two years and more than the government had previously estimated. But the growth spurt isn’t expected to last.

The gain in the gross domestic product, the economy’s total output of goods and services, came from added strength in consumer spending, business investment and the government sector, the Commerce Department said Thursday. The government had previously estimated last quarter’s annual growth rate at 3.2 percent.

Michael Gapen of Barclays said that the new report “paints a picture of a healthy consumer, likely fueled by ongoing gains in employment, modest increases in wages, and solid balance sheets.”

The economy’s acceleration last quarter marked a sharp pickup from the tepid annual growth of 0.8 percent in the first quarter and 1.4 percent in the second. Still, growth is expected to slow to a roughly 1.5 percent annual rate in the October-December quarter, reflecting in part less consumer spending and less business stockpiling.

Growth for the entire year, economists say, is likely to be around 1.5 percent. That would be down from 2.6 percent in 2015 and would be the weakest performance since the economy shrank 2.8 percent in 2009 at the depths of the worst economic downturn since the 1930s. The recovery began in mid-2009, but growth has averaged just over 2 percent, the weakest expansion in the post-World War II period.

President-elect Donald Trump had criticized the sluggish pace of growth during the campaign and said his economic policies would accelerate annual GDP growth to 4 percent or better. To do that, Trump said he would eliminate many government regulations, boost spending on the nation’s aging infrastructure and slash taxes.

Most economists don’t think 4 percent growth is realistic, given a chronic slowdown in worker productivity and a slower-growing U.S. workforce due in part to retiring baby boomers.

Most forecasters expect growth of around 2.5 percent next year, though they say those estimates could rise if Trump wins congressional support for much of his economic program. Stock markets have risen sharply since Trump’s election, partly a reflection of optimism that his proposals would boost growth and corporate profits.

Thursday’s report was the government’s third and final estimate of GDP growth for the July-September quarter. The upward revision mainly reflected stronger consumer spending, which grew at a 3 percent annual rate, more than the 2.8 percent pace that was estimated a month ago. Consumer spending is closely watched because it accounts for about 70 percent of economic activity.

The government also revised up its estimate for business investment: It showed an increase at a 1.4 percent annual rate, up from a much smaller 0.1 percent rate in the previous estimate.

Government spending was also revised up to show growth at a 0.8 percent annual rate, an increase that reflected a smaller drag from cutbacks at the state and local level.

The Federal Reserve last week boosted a key interest rate by a quarter-point, just the second increase in the past decade. Fed officials say they think they can begin to gradually interest rates as they near their goals for full employment, and inflation increases by about 2 percent a year.

In public comments last week, Chair Janet Yellen made no predictions about Trump’s economic program. But Fed officials forecast that they would raise rates three times in 2017, up from their previous forecast of two hikes.


close






Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

Latest News

Venezuela judge convicts 6 American oil execs, orders prison

By SCOTT SMITH ASSOCIATED PRESSCARACAS, Venezuela (AP) — Six American oil executives held for three years in Venezuela were found guilty of corruption charges...

Several local Walmart Supercenters remodeled in time for holidays

Fort Worth and Arlington residents will soon get a first look at the newly remodeled Walmart Supercenters at 9500 Clifford Street, 8401 Anderson St....

Retail trade group sees solid holiday sales despite pandemic

By ANNE D'INNOCENZIO AP Retail Writer NEW YORK (AP) — The National Retail Federation, the nation's largest retail trade group, expects that holiday sales could...

Grapevine company acquires San Antonio family business

Grapevine-based Able Machinery Movers, a heavy machinery-moving and rigging company, announced Nov. 24 the acquisition of Diamond E Rigging, a family-owned rigging and heavy equipment relocation business...

Fort Worth firm acquired by Abilene-based Petrosmith

Abilene-based Petrosmith, a leading provider of production equipment and oilfield tubular goods, has acquired the assets of Wellflex Energy Solutions LLC, an engineering, procurement...