America slows

The US economy grew slower than expected in the third quarter.

The advance estimate of gross domestic product was 1.5%. Economists had estimated that the US economy grew 1.6% in Q3.

Personal consumption grew 3.2%, just below the forecast for 3.3%.

All this could still be revised.

Economists steadily lowered their estimates for growth in the quarter and for the year. Estimates were raised again on Wednesday, after the advance goods trade balance showed that the deficit shrank to $58.6 billion from $66.6 billion.

Here's Bank of America Merrill Lynch on why, in a client preview: "The economy has faced some strong headwinds this year, including a sharp rise in the dollar, weaker-than-expected global growth and sharp cuts in oil sector investment. Further, the economy is in the middle of an inventory correction… Global shocks are having a big negative impact on the industrial sector (which includes resource extraction, utilities, and the production of manufactured goods). Although this sector only accounts for a shrinking, 16% share of GDP, the data have been weak enough to slow the overall economy."

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