U.S. GDP grows at solid 3% rate in third quarter

WASHINGTON — The U.S. economy, bolstered by business investment, grew at a solid annual rate of 3 percent in the third quarter. It marks the first time in three years that growth has hit at least 3 percent for two consecutive quarters.

The Commerce Department reported Friday that the July-September advance in the gross domestic product — the country’s total output of goods and services — followed a 3.1 percent rise in the second quarter. It was the strongest two-quarter showing since back-to-back gains of 4.6 percent and 5.2 percent in the second and third quarters of 2014.

The economy accelerated this summer despite the impact of hurricanes Harvey and Irma, which many private economists believe shaved at least one-half percentage point off growth.

The third quarter performance was certain to be cited by President Donald Trump, who pledged during last year’s campaign that his economic program would boost growth from the anemic 2.2 percent averages seen since the country emerged from the Great Recession in mid-2009. Trump during the campaign predicted his policies of tax cuts, deregulation and tougher enforcement of trade laws would achieve growth of 4 percent or better.

Private economists believe even 3 percent annual gains will be hard to achieve for an economy facing a slowdown in productivity and an aging workforce.

Paul Ashworth, chief U.S. economist at Capital Economics, said he was looking for growth of 2.1 percent this year, and assuming that the Trump administration is successful in getting at least a modest tax cut measure through Congress.