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| US economic growth slows sharply | US economic growth slows sharply |
| (34 minutes later) | |
| US economic growth slowed sharply in the third quarter of the year. | US economic growth slowed sharply in the third quarter of the year. |
| Gross domestic product grew at an annualised pace of 1.5% between July and September, according to the Department of Commerce, down from a rate of 3.9% in the second quarter. | Gross domestic product grew at an annualised pace of 1.5% between July and September, according to the Department of Commerce, down from a rate of 3.9% in the second quarter. |
| The slowdown was partly due to companies running down stockpiles of goods in their warehouses. | The slowdown was partly due to companies running down stockpiles of goods in their warehouses. |
| On Wednesday, the Federal Reserve kept rates unchanged and said the economy was expanding at a "moderate" pace. | On Wednesday, the Federal Reserve kept rates unchanged and said the economy was expanding at a "moderate" pace. |
| Low oil prices have hit US energy firms so far this year. But lower fuel prices have been good news for consumer spending, which accounts for more than two-thirds of US economic activity. | |
| Consumer spending grew at 3.2% in the third quarter, down from 3.6% in the second but still a strong reading. | Consumer spending grew at 3.2% in the third quarter, down from 3.6% in the second but still a strong reading. |
| 'Strength' | |
| Analysts said that the running down of warehouse stockpiles in the third quarter was likely to be a temporary effect and they expected growth to accelerate again in the fourth quarter. | Analysts said that the running down of warehouse stockpiles in the third quarter was likely to be a temporary effect and they expected growth to accelerate again in the fourth quarter. |
| "The headline number isn't great but this masks underlying strength," said Luke Bartholomew at Aberdeen Asset Management. | |
| "Inventory adjustment was a drag but final domestic demand is much stronger suggesting the fundamentals of the economy remain solid." | |
| The fundamental strength means the economy may be on track for a rate rise in December. | |
| Despite the slowdown in the rate of economic growth, the central bank on Wednesday gave its strongest indication yet that it will raise interest rates in December. | |
| "In determining whether it will be appropriate to raise the target range at its next meeting, the committee will assess progress - both realized and expected - toward its objectives of maximum employment and 2% inflation," the Fed said in a statement. |