Trump praised U.S Economy as it expands 1.9% during 3rd quarter of 2019

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The U.S Commerce Department said on Wednesday that the GDP (Gross Domestic Product) increased at an annual rate of 1.9% growth in the 3^rd-quarter of the current year. It is important that the U.S economic growth slowed in the 3^rd-quarter of the current year. It gave Donald Trump a headache as he gears up for his 2020 re-election campaign. That was down marginally from 2% in the previous 3 months and marked the 3^rd successive quarter of slowing growth in the American economy. But, the pace was faster than the 1.6% forecast by analysts.

Point to be noted that analysts warned that orders for U.S exports were falling off a cliff following a damaging trade war with China and threats from Trump of further tariffs on other nations. Investments in structures such as oil rigs, offices, and factories plunged 15.3%, after an 11.1% decline in the 2^nd-quarter. Moreover, shoppers continued to spend more than expected and supporting the overall GDP rate. Personal consumption increased by 2.9% but government spending also increased by 2%. The rising pending was supported by growing disposable income. The disposable personal income was increased by 4.5% in the same quarter as compared to the last year’s figures, but the pace slowed from 4.8% in the 2^nd-quarter.

The U.S Commerce Department also said that the deceleration in real GDP in the 3^rd quarter reflected decelerations in PCE, federal government spending, and state and local government spending, and a larger decline in nonresidential fixed investment. These movements were partly offset by a smaller decrease in private inventory investment and upturns in exports and in residential fixed investment. Trump is expecting a handsome victory in next year’s presidential election on a strong economy. He hopes that it will divert attention away from a growing list of scandals that have dogged his time in office. Trump also tweeted on Wednesday and said, “The Greatest Economy in American History! Economists’ analysis was more muted with Ian Shepherdson of Pantheon opining that the data could have been better”.