US economy slows to 1.9% growth in Q3

The American economy slowed a touch in the third quarter of the year as the China trade war again walloped the business sector, according to government figures released Wednesday.

Shoppers and pedestrians walk past stores on Fifth Avenue on Black Friday November 23, 2018 in New York. [Photo: AFP/ Don EMMERT]

But GDP growth avoided a steeper drop off thanks to a pickup in home sales and a modest recovery in exports, the Commerce Department said.

GDP expanded 1.9 percent in the July-September period, well above economists' expectations but a notch lower than the second quarter's 2.0 percent.

The result, which is subject to revision, could ease pressure on the Federal Reserve to continue cutting interest rates, but a third consecutive rate cut is widely expected later Wednesday.