U.S. Economic Growth Slows to 1.9%

America’s economic growth slowed slightly to an annualized 1.9% in the third quarter from 2% in the previous period. Results were stronger than economists expected but short of the 3% growth target set by President Donald Trump.

Compared to a year ago, third-quarter GDP expanded 2.0%, its weakest performance since the beginning of 2016.

Consumer spending, which accounts for about 70% of gross domestic product, slowed to a seasonally adjusted 2.9% in July-September from 4.6% in the second quarter but comparable to its pace a year ago, according to a first estimate by the U.S. Dept. of Commerce. The department will issue updates as more statistics become available.

Analysts note that the results may indicate the start of a business slowdown. Spending on private domestic business structures and equipment fell 15% and 4%, respectively, compared with the previous period.

Likewise, growth in federal government spending in the third quarter slowed to 2% from 4.8% in the previous quarter. Spending by state and local governments decelerated to 1.1% from 2.7%.

The economy may get a lift later today from the Federal Reserve, which is expected to cut the prime lending rate by another quarter-point. The central bank has made two such reductions already this year.