US GDP growth slows to 1.5% in Q3

December rate hike still on the cards

US GDP increased by just 1.5% in the third quarter, down from 3.9% in Q2, but the latest rhetoric from the Federal Reserve suggests a rate hike in December remains on the cards.

The US Department of Commerce said the downturn in growth reflects a decline in private inventory investment and decelerations in exports. The Dow Jones and S&P 500 both declined 0.25% to around 17,734 and 2,086, respectively, following the news. However, the S&P 500 closed the day broadly flat, while the Dow declined 0.1%. However, despite the disappointing figures, analysts believe a US rate hike in December remains on the cards. Despite holding interest rates at its latest meeting, the US Federal Reserve yesterday suggested a rate hike remains on the cards at its next meeting, t...