Signals, Powered By EquityPandit
The Commerce Department of the United States revealed the pace of growth for the third quarter of the current year, Gross domestic product (GDP) growth rate at 3.4% annualized rate, which is sufficient enough to keep the economy on track to achieve the Trump administration’s target of this year set at 3 per cent.
The US economy, however, was slightly below the estimated 3.5 per cent pace calculated during the last month. According to the reports, the growth is being driven by the US$ 1.5 trillion tax cut granted by the Trump Administration, which was a measure adopted by the White House to boost annual growth to 3 per cent on a sustainable basis.
As per the Commerce Department report, the growth rate is expected to move at a moderate pace in the fourth quarter as new orders and shipments of manufactured capital goods are falling in November.
The Federal Reserve earlier this week, raised interest rates for the fourth time this year, however, forecasted only 2 rate hikes instead of earlier estimated 3 rate hikes next year and signalled its tightening cycle in the face of financial market volatility and slowing global growth.
The report also stated that the economic growth estimates for the fourth quarter are around a 2.9 per cent rate. The slowdown in growth is expected to spill over into 2019 as the fiscal stimulus fades and a bitter trade war with China and strong dollar undercut manufacturing.
