Investing.com - Economic growth in the U.S. was faster than expected in the third quarter, as the global slowdown and fallout from the U.S.-China trade war hurt the largest economy in the world less badly than feared.
Gross domestic productgrew at an annualized rate of 1.9% in the three months to September, the Commerce Department said in its initial estimate on Wednesday.
That topped economists’ forecasts for growth of 1.6%, although it was down from 2.0% in the previous quarter.
The U.S. economy hasn’t grown at an annualized rate below 2% for nearly three years, with the exception of the fourth quarter of 2018. Hiring and consumer spending rose as tax cuts last year sent growth surging.
But the effects of that stimulus are fading, as the domestic economy faces pressure from the trade war, strikes at General Motors (NYSE:GM), ongoing issues with Boeing’s 737 Max jet and a slowdown in business investment due to heightened uncertainty.
The numbers came out just before the Federal Reserve is expected to cut interest rates for the third time this year.
U.S. futures remained the same after the data, while the US Dollar Index Futures was flat at 97.488.