Economic Preview: Why the U.S. economy’s bumpy ride is about to get bumpier

The U.S. economy has hit a lot of bumps in the road lately, and it faces more bumps ahead.The U.S. economy has hit a lot of bumps in the road lately and the way forward is unlikely to get any smoother. A barrage of reports on the economy this coming week are expected to show…

Economic Preview: Why the U.S. economy’s bumpy ride is about to get bumpier

The U.S. economy has hit a lot of bumps in the road lately, and it faces more bumps ahead.The U.S. economy has hit a lot of bumps in the road lately and the way forward is unlikely to get any smoother. A barrage of reports on the economy this coming week are expected to show U.S. growth slowed at the end of the summer. The smoldering trade war with China has sapped business investment, undercut American manufacturers and farmers and caused a decline in hiring. See: MarketWatch Economic Calendar The first big clue will come Wednesday. Gross domestic product in the third quarter running from July to September is forecast to fall to about 1.4% from a 2% pace of growth in the spring. GDP is the official scorecard, so to speak, of how well the economy is doing. Historically the U.S. has grown more than 3% a year, but the last time it reached that mark was in 2005. Most economists think the U.S. can grow no faster than about 2%, at least not for any extended time. The other piece of bad news is due Friday when the governments reveals how many new jobs were created in October. Economists predict the U.S. generated fewer than 100,000 new jobs last month, a figure that would be the lowest since May and one of the weakest numbers in seven years. So just how bad is it? Fortunately, not quite as bad as those headline numbers would suggest. Take GDP. Consumer spending soared to unsustainable levels in the spring and fell back as expected to a more measured but still healthy pace in the summer. No surprise there. More ominously, business investment was weak and production tapered off, especially among U.S. manufacturers more sensitive to swings in the global economy and the trade war with China. The good new is, Chinese leaders and the Trump White House have stepped back from the brink and resumed trade negotiations. That could give manufacturers more solid footin
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