Shortly before the Federal Reserve's important interest rate meeting, the Commerce Department in Washington reports unexpectedly good growth data for the summer. Between July and September, US gross domestic product (GDP) rose at an annualized rate of 1.9 percent, the ministry said. Economists had expected only 1.6 percent. In the spring there was a plus of two percent.
Despite the tariff dispute with China sparked by US President Donald Trump, exports rose by 0.7 percent in the third quarter. And private consumption, which accounts for two-thirds of GDP, grew 2.9 percent. In the spring, the plus here with 4.6 percent was still significantly higher. At the same time, companies reduced their investments by 3.0 percent - the biggest drop in three and a half years.
Interest rate cut expected
In the US, growth figures are extrapolated to the year. They indicate how strongly the economy would grow if the pace of growth continued for a year. In Europe, this method is abandoned, which is why growth figures from the two major economic areas are not directly comparable.
The US Federal Reserve's Fed chief Jerome Powell will announce its interest rate decision in the evening. The Fed has signaled a further rate cut in view of the economic risks triggered by the tariff conflict. Experts expect a cap of one quarter point to the new range of 1.5 to 1.75 percent.
