The economy probably slowed in the third quarter and
employers hired fewer workers in October, indicating the U.S. expansion was
losing momentum even before the partial government shutdown, economists project
reports to show this week.
Gross domestic product grew at a 2 percent annualized rate
after a 2.5 percent pace from April through June, according to the median forecast
of 69 economists surveyed by Bloomberg before Commerce Department figures due
Nov. 7. Consumer spending, the biggest part of the economy, was probably the
weakest since 2011. Payrolls rose by 125,000 workers after a 148,000 gain in
September, Labor Department figures may show.
A drop in government output and restrained business and
consumer purchases due to the 16-day shutdown last month have prompted
economists to trim fourth-quarter growth forecasts, a separate Bloomberg survey
showed. Tepid hiring and a jobless rate that’s projected to have climbed in
October help explain why Federal Reserve policy makers are pressing on with
stimulus.
The GDP report may show consumer spending, which accounts
for about 70 percent of the economy, grew at a 1.6 percent annualized rate, the
smallest gain since the second quarter of 2011, according to the Bloomberg
survey median. Purchases advanced 1.8 percent from April through June.
(Source: Bloomberg)