New figures have shown the US economy to grow at an annualized rate of 3.5% in the third quarter.
The US Commerce Department said the US economy grew at a faster-than-expected rate thanks to strong consumer and government spending.
The economy grew slower than the 4.2% rate in the second quarter but the latest results were the sixth consecutive quarter with a growth above 2%.
Analysts at Wells Fargo wrote: “Growth downshifted a bit in Q3 and we look for some further slowing in the quarters ahead.”
“That said, the US economy continues to grow in excess of the rate that most analysts consider to be its long-run potential growth rate.”
With rates growing as they are, the US economy is expected to grow at about 3% in 2018. This would be the fastest in a decade.
Consumer spending in the third quarter grew at an annual rate of 4%. This is an increase from the 3.8% that recorded in the second quarter.
Scott Anderson, the chief economist at the Bank of the West, said: “Four percent growth is a phenomenal performance.”
“We don’t think that’s sustainable. We think spending is getting a little ahead of incomes. Some of those interest-rate sensitive spending categories are going to feel more pressure as interest rates continue to rise.”
Whilst the US economy is performing well it is not, as Donald Trump has claimed many times, the best it’s ever been.
Megan Black, assistant professor of history at the London School of Economics, said: “If you choose to look at the health of the economy based on GDP, Mr Trump’s claims are suspect when compared to the national economic boom of the post-War years.”
“The post-War era saw tremendous economic growth, most notably in manufacturing, but also in agriculture, transportation, trade, finance, real estate and mining.”
