American Economy Grows Less Than Forecast in Q3

The U.S. economy expanded at a rate of just 2% in the third quarter of this year which was less than previously officially reported by the government.

The revised figures indicate that more than six years into a recovery, the economy is growing at a rate that that is lower than the historical average.

The official revision downwards to 2% from the previous 2.1% was a result of a larger trade deficit and a lower increase in inventories than earlier estimates showed.

In the first nine months of this year, the U.S. economy increased at a 2.2% rate , and the economy is forecast to grow at a similar pace in the fourth quarter that ends on December 31.

In that case, it would mean the economy has not succeeded in reaching annual growth of 3% for the 10th consecutive year – the worst performance since the end of World War II. Historically the economy has expanded at a 3.3% rate.