GDP remains unrevised at 3.5% in 3Q

By U.S. EconomyFOXBusiness

Trump slams Obama over GDP growth

New Heights Communications President Christy Setzer and RNC spokesperson Kayleigh McEnany discuss whether President Trump or former President Barack Obama deserves credit for the U.S.’s strong economic growth.

The U.S. economy maintained its growth rate during the third quarter, with the gross domestic product (GDP) remaining at 3.5 percent in a second reading on Tuesday, in line with analyst expectations.

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That cooled slightly from 4.2 percent in the second quarter, but remains in line with the Trump administration’s goal of achieving a 3 percent growth rate in each quarter

Growth is still largely being driven by President Trump’s $1.5 trillion tax overhaul, which was signed into law last December and significantly slashed the corporate tax rate, bolstering business investment and increasing consumer confidence.

After-tax corporate profits increased at a 3.3 percent rate last quarter, after rising at a 2.1 percent pace in the second quarter, according to Reuters. Consumer spending, meanwhile, revised slightly lower at 3.6 percent, compared to the 4 percent rate that was estimated in October.

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The economy is also expected to slow more in the fourth quarter. GDPNow, an up-to-date tracker monitored by the Federal Reserve Bank of Atlanta, is estimating fourth-quarter growth of 2.5 percent. That’s in large part to gradually fading fiscal stimulus and the ramifications of a nearly year-long trade war between the U.S. and China.

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