Inventory Correction Masks Resilient Demand in U.S. GDP Report
- Slower inventory investment subtracts most from GDP since 2012
- Economy in third quarter expands 3% excluding unsold goods
U.S. Economic Growth Slows to 1.5% in Third-Quarter
This article is for subscribers only.
America’s economy pulled back in the third quarter as companies cleared out inventory. Beneath the surface, though, the government’s tally of gross domestic product showed buoyant consumer and business spending.
GDP, the sum of all goods and services produced in the U.S., rose at a 1.5 percent annualized rate after a 3.9 percent pace in the previous three months. Had it not been for the biggest inventory swing since 2011, the world’s largest economy would have grown 3 percent.