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US economic growth beats forecasts, yet slows from Q2

US economic growth beats forecasts

The U.S. economy grew at a faster than expected pace in the third quarter of this year, a preliminary reading showed, but it came slower than the second-quarter figures.

According to the data released by the U.S bureau of economic analysis on Wednesday, the U.S gross domestic product (GDP) registered an annualized 1.9 percent in the three months to September, decorating from a revised of 2.1 percent in the second quarter. Analysts had estimated a growth of 1.6 percent.

The U.S. economic growth in the third quarter benefited from positive contributions from personal consumption expenditures, federal government spending, local fixed investment and local government spending.

This compares with negative performance from external fixed investments and private equity investments, according to the data.

The main driver of economic growth during the last quarter was consumer spending, which rose 2.9 percent but was lower than the 4.6 percent increase in the second quarter.

Government spending increased by about 2 percent in the quarter-ended September, compared with 4.8 percent in the previous quarter.

According to the data, the consumer CPI rose at an annual pace of 1.5 percent in the months from July to September, compared with a 2.4 percent increase in the previous quarter.

Later in the day, the Fed is set to announce its interest rate decision amid expectations of an interest rate cut of 25 basis points to 1.75 percent.

As of 13:30 GMT, the dollar index, which measures the performance of six major currencies against the green currency, rose 0.03 at 97.49.

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