The US Economy Is Still on Track for Its Strongest Growth Since 2005

The Department of Commerce revised the U.S. economy’s rate of growth in the third quarter of 2018 downward Friday after new data revealed lower consumer spending and exports.

The growth rate of U.S. Gross Domestic Product (GDP), a measure of overall economic activity, was revised from 3.5 percent down to 3.4 percent.

GDP is still on track to increase by at least 3 percent over the year, something that has not happened since 2005, according to Axios.

Private inventory investment, a measure of goods produced and held by firms instead of sold, rose with the more complete data, offsetting some of the change in consumption and U.S. exports, according to the Bureau of Economic Analysis.

GDP growth has been driven by tax cuts President Donald Trump signed into law at the end of 2017.

Pilot Hid Note in Cockpit of Plane as Fleet Was Grounded in March 2020, Now We Know the 'Very Chilling' Sight He Was Greeted With

The GOP tax bill cut rates for the majority of Americans but lowered state exemptions that may result in some paying higher tax rates, such as people who live in California and New York who generally itemize their taxes.

Tax revenue at state and levels has also increased since the tax bill went into effect.

The economic benefits driven by the tax package are being countered by a weak housing market and an increasing trade deficit.

Experts expect the GDP’s slowing trend to continue through the fourth quarter of 2018 and into 2019, CNBC reports.

Do you think Trump's presidency has been good for the U.S. economy?

Gross Domestic Income (GDI), another proxy for economic activity, was revised upward from 4.0 percent growth during the third quarter to 4.3 percent.

The third quarter GDI growth was a large improvement over the second quarter increase of 0.9 percent.

GDI growth picked up in the second half of 2018 partly because a competitive U.S. labor market is forcing employers to pay more to attract and retain workers.

Wages hit 3.1 percent annual growth in November, the first time the 3 percent benchmark has been passed since April 2009.

Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience.

For licensing opportunities of our original content, please contact

Rate of Inflation Skyrockets, Consumer Prices Rise at Fastest Rate in Years

A version of this article appeared on The Daily Caller News Foundation website.

Truth and Accuracy

Submit a Correction →

We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

, , , , , , , , ,
Founded by Tucker Carlson, a 25-year veteran of print and broadcast media, and Neil Patel, former chief policy adviser to Vice President Dick Cheney, The Daily Caller News Foundation is a 501(c)(3) non-profit providing original investigative reporting from a team of professional reporters that operates for the public benefit.