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Slowdown In U.S. Growth Figures For 2019 Are Worrying

The U.S. economy is showing signs of a slowdown.

Thought the U.S. economy has shown an annual growth of 2.2 percent for the fourth quarter in 2018, the last two months of the fourth quarter have not been good, showing a slowdown. This slowdown has spilled into the next year.

The Commerce Department has said that the economy will continue it’s slow down in 2019. The original estimate of 2.6 percent growth has dwindled down to 2.2 percent last year. Data says that the lower growth was due to lower spending from consumers and the government. Another reason was the decrease in business investment.

The overall growth rate for 2018 has been revised down from 3.1 percent growth to 3 percent growth. Though the budget framed by the Trump administration is for 3 percent growth for the next five years, data shows that this growth rate may be hard to sustain.

For 2019, the National Association for Business Economics has lowered growth forecast for the year to 2.9 percent as there is a weakening in the economic indicators.

The trade tension that is still brewing between the U.S. and China is stated as the chief reason for the slowdown in the economy. Though talks are still going on, trade tension continues with no conclusive agreement drawn yet. This is affecting the global economy as well.

Another reason cited is Britain’s exit uncertainty, where there is a slump in the economic confidence in the eurozone, last month, the lowest since 2016.

The Federal Reserve has cut its growth forecast for the current year. In December it had expected a 2.3 percent growth, but the estimate has been lowered in March to 2.1 percent growth during the Fed policy meeting.

However, the Federal Chair Jerome Powell says that the economic foundations of the country are still strong. However, interest rates are likely to remain the same this year.

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Kevin Wells

Kevin Wells’s 15 Years of experience in the field of content writing has not stopped him from learning. Industry News Store has given him the best platform to prove his talent in content writing and also an excellent opportunity to grasp new avenues from juniors as well as seniors. He and the entire team of Industry News Store are working towards providing the populace with trending data with just a single click. Kevin degree in Business Management has helped him only understand and analyze the financial numbers whether gained or lost in business in a better way

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