U.S. Third Quarter GDP Slows Down Slightly

On Wednesday October 30, 2019, the Commerce Department’s Bureau of Economic Analysis released third quarter preliminary GDP data. The annual rate of GDP growth came in at 1.9%, down from 2.0% in the June quarter and 3.0% in the first quarter. The 1.9% figure exceeded the consensus estimates of 1.6%. In the third quarter, consumer spending held up, but non-residential investment grew at a slower rate in the quarter compared to the first six months of the year.

As for prices, the GDP price index increased 1.4% in the third quarter, compared to an increase of 2.2% in the June quarter. Core inflation, excluding food and energy, increased 1.8%, the same rate as reflected in the June quarter.