The U.S. economy slowed to a modest growth rate of 1.9% in the summer as consumer spending downshifted and businesses continued to trim their investments in response to trade war uncertainty and a weakening global economy. AdvertisementConsumer spending, which accounts for 70% of economic activity, grew at a solid 2.9% rate in the third quarter, but it was still a slowdown after a 4.6% surge in the second quarter. Business investment in structures plunged at a 15.3% rate in the third quarter after a sharp 11.1% drop in the second quarter. Government spending slowed to a growth rate of 2%, down from a 4.8% gain in the second quarter, with federal spending and state and local government spending all slowing. Advertisement“President Trump’s trade war is doing significant damage to the economy,” Zandi said.

Source: Los Angeles Times October 30, 2019 12:45 UTC