U.S. Economy Flashes Signs It’s Downhill From Here
Private analysts and the Federal Reserve say a slowdown is looming. Though few believe a recession is near, a slowdown in growth would have far-reaching implications.
What if that was as good as it gets?
The Commerce Department reported Friday that U.S. gross domestic product expanded at a 3.5% annual rate in the third quarter.
Coming off a 4.2% growth rate in the second quarter, it marked one of the best six-month stretches for the U.S. economy in the past decade.
However, private analysts and the Federal Reserve say a slowdown is looming. Economists surveyed by The Wall Street Journal estimate the growth rate will slow to 2.5% by the first quarter of next year and 2.3% by the third quarter of 2019. The Fed is expecting growth to slow further to a 1.8% rate by 2021.
“We think U.S. growth may have just peaked,” said Michael Gapen, chief U.S. economist for Barclays Capital, who is in Wall Street’s big-slowdown camp.