Jan 25

US economy grew at a 3.2% pace in the third quarter of 2017

The US economy grew at an annual rate of 3.2 percent in the third quarter of 2017, slightly below the previous estimate of 3.3 percent, the US government said on Thursday.

The US Department of Commerce today released the latest of its three calculations on the evolution of the Gross Domestic Product (GDP) between July and September.

Despite the slight downward revision, the growth rate of 3.2% is the highest recorded since the beginning of 2015.

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The number is slightly lower than analysts’ estimates, which had anticipated a 3.3% expansion.

The data was driven by a smaller increase in consumer spending, which accounts for two-thirds of economic activity, and grew 2.2%, compared to 2.3% previously anticipated.

Sustained economic improvement in the US has led the Federal Reserve to raise interest rates three times this year, the last one a week ago, to leave them at between 1.25% and 1.5% %.

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President Donald Trump reached the White House in January this year with a promise to achieve annual growth of more than 3 percent underpinned by an ambitious plan that would represent the country’s biggest tax reform over decades and cut corporate and many Americans.

After overcoming a number of obstacles, the plan was approved by both Houses of Congress on Wednesday and promises, according to Republicans, to accelerate economic growth to about 4% per year.

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