The US economy slows slightly more than expected in the third quarter
Headline economic growth Stateside slowed down by slightly more than was expected in the third quarter of 2015, drawing mixed reviews from economists.
US gross domestic product expanded at an annualised pace of 1.5% over the three months to September, slower than the 3.9% pace seen in the previous three months, according to the preliminary estimate from the Department of Commerce.
Analysts had anticipated quarterly growth of 1.6%.
Personal consumption expenditures, which makes up the lion´s share of GDP, grew at a 3.2% clip (consensus: 3.3%) after expanding by 3.6% over the previous three months.
Fixed investment was held back by a 47% (annualised) fall in oil well drilling, Ian Sheperdson, chief economist at Pantheon Macroecoomics pointed out in a research report sent to clients.
Nevertheless, outlays on equipment grew by a "robust" 5.3% - the best in a year - Sheperdson added.
Public spending contributed 0.3 percentage points to the rate of growth in GDP and should rise after this week´s deal, Pantheon explained.
The 'core' GDP price deflator advanced at a 1.2% year-on-year pace (consensus: 1.4%) in the third quarter, while the 'core' PCE deflator advanced 1.3% (consensus: 1.4%).
International trade, or foreign demand, only subtracted a "minimal" 0.03 percentage points.
"Frankly, you can spin these GDP figures either way. Headline GDP growth slowed to below the economy´s potential growth rate of about 2%, but the drag from inventories won´t be repeated in the fourth quarter. Strong consumption was encouraging but the waning of business investment as a little troubling. [...] we know consumption softened notably in September. All things considered, we expect GDP growth of about 2.5% in the fourth quarter and in 2016 as well."