U.S. economy looking durable despite risks from trade conflict

WASHINGTON — A series of government reports Wednesday cast a picture of a steadily growing U.S. economy, fueled by solid consumer spending and defying threats — at least for now — from a U.S.-China trade war and a global slowdown.

The Commerce Department estimated that the economy grew at a moderate 2.1% annual rate over the summer, slightly better than it had previously estimated. Other reports showed stronger consumer spending and a rebound in orders for big-ticket manufactured goods.

For the July-September quarter, the rise in the gross domestic product, the economy’s total output of goods and services, exceeded the government’s initial estimate a month ago of a 1.9% annual rate. A key reason is that businesses didn’t cut back on investment spending as much as first estimated.

The economy had begun the year with a sizzling 3.1% GDP rate, fueled largely by the nowfaded effects of tax cuts and increased government spending.

Many analysts worry that GDP growth is slipping in the current October-December quarter to a 1.4% annual rate or less as business investment weakens further.

But most say the slowdown won’t likely be as severe as it might have been because consumers, who drive about 70 percent of the economy, are signaling that they will likely keep spending through the holiday shopping season and into next year. That spending is being supported by rising incomes and an unemployment rate that is near the lowest levels in a half century.