The domestic economy grew at a 3 percent rate between July and September, the U. S. Commerce Department announced on Friday.
Oct. 27 (UPI) — The domestic economy grew at a 3 percent rate between July and September, the U. S. Commerce Department announced on Friday — a strong showing posted in the face of damage from two major hurricanes.
The U. S. gross domestic product expanded despite expected difficulties in dealing with the storms — Harvey in Texas and Irma in Florida — that hit major population centers, a report by the Commerce Department’s Bureau of Economic Analysis said.
The Commerce Department’s report said the growth was powered largely by consumer spending, which was likely depressed by the storms and their aftermath. Some of the impact of the hurricanes could be reflected in the fourth quarter report, it added.
Consumer spending grew by more than 2 percent in the third quarter. Non-residential fixed investment by businesses was up 4 percent, exports grew 2.3 percent and government spending fell 1 percent, the report noted — while disposable personal income rose by more than 2 percent.
The inflation rate also rose in the third quarter.
The price index for personal consumption expenditures, the Federal Reserve ‘s preferred calculation of inflation, rose to 1.5 percent. A slight increase in the second quarter was anticipated by the Federal Reserve, and could lead to another interest rate hike when the Fed meets again in December.
