COOLING OFF

U.S. Economic Growth Slows in Third Quarter

However, growth slowed less than was expected.

The economy slowed less than expected in the third quarter, with gross domestic product increasing at a 3.5 percent annualized rate. That’s down from a 4.2 percent annualized growth rate in the second quarter, but still exceeding the estimated growth potential of a 2 percent annualized rate. Reuters reports that a tariff-related drop in soybean exports to China was somewhat offset by the strongest consumer spending in nearly four years and a boost in inventory investment. Economic expansion is in its ninth year—the second longest on record. Economists polled by Reuters had forecast GDP expanding at a 3.3 percent annualized pace in the third quarter.