US economy reflects moderate growth

Associated Press

Martin Crutsinger

AP Economics Writer

WASHINGTON (AP) — The U.S. economy grew at a moderate 2.1 percent rate over the summer, slightly faster than first estimated. But many economists say they think growth is slowing sharply in the current quarter.

The Commerce Department says the July-September growth rate in the gross domestic product, the economy's total output of goods and services slightly exceeded its initial estimate of a 1.9 percent rate.

The economy had begun the year with a sizzling 3.1 percent GDP rate. Many economists have estimated that GDP growth is weakening in the current quarter to as slow as a sub-1 percent annual rate, largely because the U.S.-China trade war has led businesses to cut investment and inventories.

Still, the holiday shopping season is expected to be relatively healthy given solid job growth and consumer spending.