US economy grows at annual rate of 3 pct in Q3

WASHINGTON, Oct 27 (KUNA) -- The US economy grew at an annual rate of 3 percent in the third quarter, marking the first time in three years that growth has hit at least that level for two consecutive quarters, the Commerce Department reported Friday.
The July-September advance in gross domestic product (GDP) followed a 3.1 percent increase during the second quarter, and was the strongest two-quarter showing since gains of 4.6 percent and 5.2 percent in the second and third quarters, respectively, of 2014.
The latest GDP report showed that the US economy grew significantly this summer despite the impact of hurricanes Harvey and Irma.
President Donald Trump said during last year's campaign that his economic program would increase growth to 4 percent or better from the 2.2 percent averages recorded since the US came out of the recession in mid-2009.
In the third quarter, consumer spending declined to 2.4 percent from 3.3 percent in the second quarter, the data showed. The report indicated a gain of 8.6 percent in business investment in equipment and an increase in business rebuilding of inventories.
Government spending declined for a third straight quarter, dropping 0.1 percent. Residential construction dropped at a 6 percent rate following a 7.3 percent rate of decline in the second quarter, the report said. (end) rm.gta