GDP in US increases 1.9pc in Q3 as consumer spending rises 2.9pc
GROSS domestic product in the US rose at an annual rate of 1
GROSS domestic product in the US rose at an annual rate of 1.9 per cent in the third quarter, according to data compiled by the Department of Commerce's Bureau of Economic Analysis (BEA).
'The US economy continues its steady growth in defiance of media sceptics calling for a recession,' US Commerce Secretary Wilbur Ross told the American Journal of Transportation.
'Since President Trump took office wages have surged, unemployment has hit record lows and poverty has fallen for all Americans, including the country's most vulnerable,' said Mr Ross.
In the third quarter, US consumer spending increased by 2.9 per cent. Spending on durable goods rose by 7.6 per cent from the second quarter. The 1.6 per cent growth in goods exports demonstrates that the US President's trade policies are bringing 'Made in America' back. Business intellectual property investment grew by 6.6 per cent.
In September, unemployment in the US dropped to 3.5 per cent--its lowest level in half a century. The unemployment rate for Hispanic Americans and African Americans were also at record lows. The total numbers of employed Americans hit the highest level on record. Between 2017 and 2018, 2.3 million more Americans gained full-time, year-round employment, including 1.6 million women.
This has translated to higher incomes for average Americans. The Census Bureau reported in September that real median household income increased to US$63,000 in 2018, the highest level in two decades. Between 2017 and 2018, real median earnings of full-time, year-round workers rose 3.4 per cent and 3.3 per cent for men and women respectively.
This good news tracks with Labour Department numbers, which marked a year of consecutive year-on-year hourly wage increases of three per cent or higher. Before 2018, wage gains had not reached three per cent since 2009.