Notwithstanding with the optimist forecast, the US economy growth rate in the third quarter touched a new low as housing market continues to shake consumer confidence. Gross domestic production of the U.S. rose by 2 percent in the third quarter against the forecast of 2.2 percent figure predicted a month a go, according to Commerce Department data. The growth rate pulled down further in comparison with the second quarter, when the U.S. economy grew at the rate of 2.6 percent.
Further, incessantly increasing interest rates on the other hand, have fueled fears about the world’s largest economy. The experts have said that this figure is less likely to be repeated in the fourth quarter. However, a dramatic rebound will still be a distant dream as the economy is too low. The U.S. Commerce Department has earlier informed that new homes being built had fallen to a six year low and further this sector is at record low in 15 years.
Moreover, interest rate have been considerably stable at 5.25 percent in recent months however Federal Reserve raise the cost of borrowing at a steady pace to battle against increasing prices of energy and petrol. Analysts are of the view that there are less chances of increasing interest rates however that also depend on external price pressure.
However, the U.S. authorities suggesting a softer outlook for the economy rate have indicated earlier that the risk of remains very much in place. Federal Reserve will come under immense pressure to raise the interest rate if the prices continue to rise.
