Washington (AFP)

The growth of the US economy was stronger than expected in the third quarter and was revised upwards to 2.1% year-on-year, surprising analysts, according to a new government estimate released Wednesday.

The Commerce Department increased by 0.2 percentage point the pace of expansion of the world's largest economy from July to September, with business investment better than expected.

Analysts were more pessimistic, expecting 1.9% growth, after 2% in Q2 and 3.1% in Q1.

All goods and services produced by the United States totaled $ 21.542 billion in the third quarter.

Business investment, which fell by 3% according to the first estimate, notably because of the trade tensions that delay decisions, finally declined by only 2.7%.

Consumption, the traditional locomotive of growth, accounting for 70% of the US Gross Domestic Product (GDP), remained strong, advancing by 2.9%, with a strong rise (+ 8.3%) in spending on goods. such as cars or household appliances.

These figures echo the optimism of Fed boss Jerome Powell, who on Monday described "generally good" economic conditions, ensuring that the longest period of US growth, at age 11, was on track. to extend.

At the end of the third quarter, the Fed had already lowered interest rates twice a day, before making another quarter-point cut in October.

"At this stage of this long expansion, I see glass more than half full, and with the right policies we can fill it more," he said.

- Break on rates -

This relative good pace of growth confirms in any case that the Central Bank intends to pause in its rate cuts, even if the President, Donald Trump, continues to claim a cheaper credit.

After declining this year by 75 basis points in overnight rates that affect all other loans, Jerome Powell said the easing helped "already boost consumer and business morale," which he says in real estate and spending on durable goods.

In these conditions, a pause on the interest rate cuts is almost ensured at the next monetary meeting on December 10th and 11th.

In the 3rd quarter, the real estate market confirmed its growth (+ 5.1%), the strongest in two years, boosted by these low interest rates.

At the height of the trade war, exports, which had dropped by 5.7% in the second quarter, recovered slightly in the 3rd quarter, to + 0.9% (against + 0.7% for the first estimate).

Imports, which are, on the other hand, to be subtracted from GDP, were also stronger than previously estimated, rising by 0.8%.

These positive revisions were offset by a downward revaluation of government spending, which advanced 1.6% instead of 2% for the first estimate.

The Department of Commerce also released October's stronger-than-expected growth in durable goods orders, up 0.6%, even without the volatile transportation sector, instead of 0.7% anticipated by analysts.

© 2019 AFP