Oct 29, 2016 03:53 AM EDT

What Made The U.S. Economy Grow By 2.9 % In The Third Quarter?

The US economy grew in the last quarter, moving up by 2.9%, showing better trade performance and rising consumer demand. The US Commerce Department released the gross domestic product figures revealing the state of the nation's economy prior to the elections on Nov.8.

The growth increase was lower than the past accomplishments but was a marked increase from the past two quarters. The growth is significant enough to likely call the attention of Federal Reserve officers that will be setting the benchmark interest rate in December.

Economists believe that the US economy is on a stable trend despite the modest increase considering the rollercoaster progress at Wall Street and the bickering of political parties prior to the presidential elections. In the last seven years, The US economy has been steadily recovering though the rise maybe modest and not spectacularly big.

US yearly growth remained within the 1.75 percent to 2.75 percent range, averaging 2.6 percent growth from 2010 to 2015.

Economist Michael Gapen of Barclays projects an increase of 2.5 percent for the last quarter and another 2 percent rise on the first quarter of 2017. He believes that consumer demand is stable and industries are gaining strength through inventory reduction and new capital infusion.

Trade, manufacturing as well as the energy sectors seem slowing but stable enough not to worry economists. It was expected to be low for the first half the year but the figures showed it is lower than what the analysts predicted. Low investments, low oil prices, high inventories had a marked effect on the nation's economy.

Many economists had predicted an anemic third quarter performance but the figures continued to rise, showing increases in exports and a decrease in imports last September.

 Presidential candidate Hilary Clinton welcomed the good news since she has always claimed in her campaign sorties that the US economy is a better shape than what her opponent Donald Trump and the Republicans are saying.


Get the Most Popular Jobs&Hire Stories in a Weekly Newsletter
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics