US economy shows resilience with 2nd straight quarterly growth

Posted by Daily Shipping Times on 02-11-2017        Tweet

WASHINGTON: Powered by businesses and consumers, the US economy grew at a solid 3 annual pace last quarter despite two devastating hurricanes evidence of economic durability and all but assuring that the Federal Reserve will resume raising interest rates late this year.

Recent figures from the Government marked the first time in three years that the economy has expanded at a 3 percent or more annual rate historically, a normal pace for a healthy economy for two straight quarters.

The 3 percent annual growth for the July-September quarter in gross domestic product the total output of goods and services produced in the United States followed a 3.1 percent annual pace in the previous quarter.

It was the strongest two-quarter showing since 2014.

Most economists, though, have said they think that even 3 percent annual gains will be hard to achieve for an economy that, for all its strength, is enduring a slowdown in work productivity as well as an aging workforce. Many analysts believe annual growth in the current October-December quarter will amount to a rate of around 2.7 percent.