A waning international appetite for American-made goods held back the nation’s economic growth during the third quarter, government data released Thursday morning show, a side effect of broader weakness in the global recovery.
The Commerce Department reported that the U.S. economy expanded at an annual rate of just 1.5 percent between July and September, less than half the pace of the previous quarter, according to The Washington Post.
The poor performance of exports throughout the year has forced businesses to slash inventories. Though the numbers were in line with expectations, Wall Street opened in the red on the news.
“Manufacturers continued to anticipate modest growth moving forward, but their outlook remains guarded, particularly in light of current headwinds,” Chad Moutray, chief economist at the National Association of Manufacturers, told the paper.
American households, however, have remained resilient. Consumer spending rose by 3.2 percent during the third quarter, the data show. Business investment in equipment was also strong, though early indications for the fourth quarter suggest orders for durable goods are still weak.
