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USA: The economy grows weaker than expected in the summer

USA: The economy grows weaker than expected in the summer

Washington (dpa) – The US economy grew somewhat weaker in the summer than previously known. In the third quarter, gross domestic product rose 4.9 percent year-on-year compared to the previous quarter, the Commerce Department announced Thursday in Washington. A second estimate showed an increase of 5.2 percent, while the first survey showed a current increase of 4.9 percent. Analysts had expected an average of 5.2 percent.

According to the ministry, the slight downward correction in growth is primarily due to somewhat weaker consumer spending. On the other hand, foreign trade supported development to a somewhat greater extent due to downward adjustment of imports. Imports put mathematical pressure on economic growth through external contribution, which compares exports and imports.

US growth figures are estimated on an annual basis, that is, they are extrapolated over the course of the year. It indicates how much the economy will grow if the current pace continues for a year. This approach is not used in Europe, which is why growth figures cannot be directly compared. To get a growth rate similar to Europe, you would have to divide the US rate by four.