U.S. Economy Grows By Nearly 3 Percent Amid Warning Signs

Analysts told the Wall Street Journal that although the increase could quell fears of an economic slowdown, the country's weak growth pattern should continue.

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Newly released federal data showed the U.S. economy grew by 2.9 percent in the third quarter of 2016.

The increase in real gross domestic product was ahead of the second quarter growth of 1.4 percent and, according to The Wall Street Journal, the largest jump in two years.

The Journal, however, noted that the Commerce Department Bureau of Economic Analysis found several indicators of sluggish growth between July and September.

Rising business inventories and export growth were the top two contributing factors to the quarterly increase, but the latter could be attributed to a one-time increase in farm exports — particularly soybeans.

Hiring and output were improved compared to the second quarter, but the numbers also showed slower gains in consumer spending, slower growth in housing sector and lagging business investment.

Analysts told the paper that although the increase could quell fears of an economic slowdown, the country's weak growth pattern should continue. The data also meant that the 2016 growth rate is unlikely to match the previous year.

“The reality is not as encouraging as the 2.9 percent headline,” Ellen Zentner, chief U.S. economist for Morgan Stanley, told the Journal.

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