Economy grew at 3.5 percent rate in 3rd quarter

Oct. 26 (UPI) — The U.S. economy grew at a 3.5 percent annual growth rate in the third quarter, considered strong but lower than the 4.2 percent rate at which it grew in the second quarter, according to a U.S. Bureau of Economic Analysis report Friday.

The report stated that the increase in real gross domestic product in the third quarter reflected positive contributions from personal consumption expenditures and private inventory investment, state, along with local government spending, federal government spending, and nonresidential fixed investment.

The report stated those offset negative contributions from exports and residential fixed investment.

“The bureau emphasized that the third-quarter advance estimate released today is based on source data that are incomplete or subject to further revision by the source agency,” the BEA wrote. “The ‘second’ estimate for the third quarter, based on more complete data, will be released on Nov. 28.”

NPR reported that private analysts had expected a 3.4 percent growth rate in gross domestic product for the third quarter. Consumer spending increased at a four percent rate over that period, topping the 3.8 percent growth over the previous three months.

“The economy is still growing significantly above its potential, which is pretty remarkable,” economist Michael Strain of the American Enterprise Institute, told the Washington Post, adding that the country’s economy has avoided another recession since 2009.

Matt McDonald, a former White House communications aide for President George W. Bush and now a partner at Hamilton Place Strategies, said the challenge for Republicans is connecting the economy’s good news to any legislative agenda.

“Where the administration has struggled is in tying the low unemployment rate and strong economy to any actions they’ve taken, like the tax cut,” McDonald told the Post.