That would be a disappointment to the president, who has repeatedly proclaimed that his economic policies featuring tax cuts, deregulation and tough enforcement of trade agreements would lift the country out of the doldrums of the slowest economic expansion in the post World War II period. Many analysts are forecasting a further slowdown to GDP growth of around 1.5% in 2020. Growth this year is forecast to come in around 2.3%, down from 2.9% last year. as global headwinds, lingering policy uncertainty and squeezed profits erode employment growth and confidence,' said Gregory Daco, chief U.S. The trade deficit, which has widened as Chinese retaliatory tariffs have hurt farm sales, trimmed GDP growth by about 0.1 percentage-point in the third quarter.Įconomists believe growth could slow further in the current October-December quarter and into next year, given all the economic risks. Government spending slowed to a growth rate of 2%, down from a 4.8% gain in the second quarter, with federal spending and state and local government spending all slowing. Residential investment, which had been falling for six quarters, finally saw an increase, rising at a 5.1% rate, a gain that reflected the impact lower mortgage rates from the Federal Reserve's rate cuts were having on sales and construction plans. Business investment in structures plunged at a 15.3% rate in the third quarter after a sharp 11.1% drop in the second quarter. There were signs the trade battle and weak global growth were taking a toll as businesses cut back on their investment spending for a second straight quarter in the face of rising uncertainty.

Iconomy 1.9