The US economy leaves behind the weakness, and grows in third quarter – The View

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consumer spending increased between July and September to an annual rate of 2.1%.

Photo: Belhú Sanabria / The Race

Washington.- The US economy left behind the weakness shown in the first half of the year with a growth of the 2.9% in the third quarter, driven mainly by rising exports and investment in inventories, reported today the Government.

The gross domestic product (GDP) of the united States grew at an annual rate of 2.9% between July and September, more than expected by experts, and more than double the 1.4% for the previous quarter, according to the first estimate released by the Commerce Department.

That growth in the third quarter was also the highest in two years.

The u.s. economy started 2016 with a growth weak, of just 0.8% between January and march, which accelerated to 1.4% in the second quarter and now with a lot more force to the 2.9% of the third party.

The analysts forecast that the robust growth recorded from July to September, hold during the last quarter of the year.

consumer spending, the true engine of the US economy, increased between July and September to an annual rate of 2.1%, well below the 4.3% in the second quarter.

a Good part of the rebound in GDP in the third quarter was due to a 10% increase in exports, driven by a temporary boost in shipments of soy american associated to a poor harvest in South america.

In terms of the accumulation of inventories by businesses, generated between July and September, an addition of 0.6 percentage points to the GDP after five consecutive months in which had been a drag on growth, according to the report.

The companies have also increased in the analyzed period the investment in structures such as new plants or offices, but the spending on equipment was again weak.

While, the public spending grew by 0.5%, mainly due to the investment of the federal government.

In a statement, the chief economic adviser of the White House, Jason Furman, noted the rise in exports, "the fastest" since 2013, and the strength of consumer spending, but noted that work remains to be done "to strengthen the economic growth."

On the same line, the democratic candidate to the White House, Hillary Clinton, believes that there is more to do "to build an economy that works for all" and his plan "would create jobs, well-paid jobs through investments in infrastructure, innovation and education", said in a statement one of their advisors, Jacob Leibenluft.

For its part, the campaign of the aspirant republican presidential Donald Trump, emphasized in another statement that the economic plan for the magnate will generate 25 million jobs and a growth of 4% for "through regulatory reforms, tax, trade and energy".

the united States "can do better than the modest growth of 2.9% recorded in the third quarter," said Dan Kowalski, deputy director of policy of the campaign of Trump.

The acceleration of GDP in the third quarter consolidates the forecasts of the Federal Reserve (Fed), the central bank of the USA, announced in December, at its last monetary policy meeting of the year, a new rise in the benchmark interest rates, currently between the 0.25 and the 0.50%.

The next Fed meeting is on 1 and 2 November, only a few days before the presidential elections of 8 November, and the experts nearly rule out that the rise in rates is decided in this meeting, precisely because of the proximity of the election date.

Pushed by the poor GDP data, Wall Street was betting to the upside on the opening, with an advance of 0.19% on the Dow Jones Industrial.