US economic growth slows in third quarter as businesses cut back

Gross domestic product increases at 1.5% annual rate after expanding at 3.9% in second quarter, as businesses reduced restocking warehouses

US economic growth cooled in the third quarter despite a pick-up in consumer spending as a glut on inventory led to businesses cutting back on restocking warehouses.

Gross domestic product (GDP) - the broadest measure of economic health - increased at a 1.5% annual rate, a significant drop from the 3.9% annual growth of the second quarter, the Commerce Department said on Thursday. The main drag came from businesses stockpiling inventory, however, and economists expect growth to improve in the fourth quarter.

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