The U.S Economy is growing at a better pace than what economist have predicted. Several governmental economic reports on Wednesday showed that U.S. economy continues to grow at a steady pace, fueled by consumer spending and resisting threats from the trade war with China.
The recent data by the Commerce Department estimated that the economy grew at a rate of 2.1% annually over the summer, which is a slightly higher rate than it had formerly projected. In addition, data from economic reports revealed stronger consumer spending as well as a rebound in orders for expensive manufactured goods.
“The largest contribution to the revision came from yesterday’s October international trade report, which showed a surprisingly large narrowing of the trade deficit,” the J.P. Morgan economists wrote according to CNBC. “But there was also good news in today’s October durable goods report, which indicated some improvement in business capital spending, a category that has been weak for much of the year.”
The data for the July-September quarter, the growth of the gross domestic product (GDP), which represents the economy’s entire output of goods and services, topped the government’s early projection a month ago of a 1.9% annual rate. One of the major reasons for the stronger than expected GDP is that businesses didn’t cut back on investment spending as much as economists expected they would.
“Consumption growth has moderated in the last three months from an extremely strong pace in March through July. Still, solid nominal consumption together with momentum from growth in wages and salaries suggests spending can remain the main driver of growth through 2020,” wrote Citigroup economists, CNBC reported.