US in solid 3.2 percent growth rate

WASHINGTON » The U. S. economy grew at 3.2 percent annual rate from July through September, slightly slower than previously estimated but enough to give the country the best backto-back quarterly growth rates in three years.

The figure was revised down from last month’s estimate of 3.3 percent, the Commerce Department said Thursday. The change reflected a bit less spending by consumers, which was offset somewhat by increased spending by state and local governments.

The 3.2 percent growth followed a 3.1 percent gain in the second quarter, the first consecutive quarters that growth has topped 3percent since 2014.

President Donald Trump has pointed to these gains as evidence his economic program is producing results. Many economists believe GDP growth this quarter could hit 3 percent or better.

Congress this week passed amajor tax overhaul, giving Trump the biggest legislative achievement of his first year in office. Economists believe the proposal will boost growth temporarily in 2018 and possibly 2019. But then they forecast that the positive effects will fade, with slower growth going forward due to higher interest rates stemming fromthe bigger government deficits.

But at the moment, economists are optimistic about growth prospects. The Federal Reserve’s Atlanta regional bank is forecasting GDP growth could hit 3.3 percent this quarter. If GDP does top 3 percent, it would mark the first time that has occurred since three quarters in late 2004 and early 2005.