A surge in business investment, an increase in inventories, and robust consumer spending drove economic growth in the third quarter, overcoming a massive drag from international trade rooted in the U.S. dependence on tech imports.
\n\nThe Commerce Department reported Thursday that gross domestic product grew at a 3.4 percent annualized rate from July through September, accelerating from the second quarter’s 2.2 percent pace and beating economists’ expectations for 3.1 percent growth.
\n\nA breakdown of the figures shows that private investment contributed 3.27 percentage points to growth, including 1.78 points from business fixed investment and 1.61 points from increases in inventories. A decline in residential investment, reflecting a slumbering housing market, was a drag on growth.
\n\nConsumer spending contributed another 2.52 percentage points, nearly identical to its contribution in the second quarter.
\n\nThe strength of domestic demand was partly offset by a sharp deterioration in net exports—basically, exports minus imports—which subtracted 3.32 percentage points from growth. Imports surged at a 19.7 percent annualized rate, subtracting 2.64 points from the GDP calculation. Exports fell at a 5.7 percent rate, subtracting another 0.68 point.
\n\nThe standout feature of the report was the extraordinary strength of business investment, particularly spending on equipment.
\n\nNonresidential fixed…
Original source: https://www.breitbart.com/economy/
