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New GDP Number Is Out. Here's What It Means

Growth slips to 1.9% in 3rd quarter but beats expectations
By Kate Seamons,  Newser Staff
Posted Oct 30, 2019 11:00 AM CDT
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President Trump is seen after arriving on Marine One on the South Lawn of the White House on Wednesday in Washington.   (AP Photo/Alex Brandon)

(Newser) – The summer temps may have been record-setting hot, but the economy experienced some chills. Data out Wednesday via the Commerce Department shows GDP grew at a 1.9% rate from July through September, down from a growth rate of 2% in the second quarter. Why, what it means, and President Trump's morning thoughts on the economy:

  • The Washington Post frames the slowdown as expected, as business investment was curtailed following the president's decision to ratchet up the trade war with China at the start of August. Many expected much worse, reports the Hill, with some forecasts as low as a growth rate of 1.3%.
  • The Post notes the 3% drop in business investment in the third quarter is the largest since late 2015: "Still, the sustained pace suggests it is unlikely to dive into a recession anytime soon, unless there is a major shock or the trade war worsens significantly."

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