GDP shows U.S. economy's growth tapers to 1.9% in 3rd quarter

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GDP shows U.S. economy's growth tapers to 1.9% in 3rd quarter
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GDP data show U.S. economic growth tapering to 1.9% in third quarter

WASHINGTON - The U.S. economy expanded at a mild 1.9% annual pace in the third quarter, decelerating slightly from the spring owing to a decline in business investment and smaller increases in consumer and government spending. Economists polled by MarketWatch had forecast gross domestic product to slow to 1.6% from 2% in the second quarter. Consumer spending, the main engine of growth, rose a healthy 2.9%, but it was down from 4.6% in the spring.

Businesses investment in structures sank 15% and spending on equipment dropped nearly 4%. Government spending also increased by a smaller 2% compared to 4.8% in the second quarter. In a surprise, inventory levels were barely changed. The change in the value of unsold goods slipped to $69 billion from $69.4 billion. Residential investment also added to GDP with a 5.1% increase - the first in seven quarters. Trade was a slight drag. Exports rose 0.7%, but imports rose a somewhat faster 1.2%.

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