The US economy grew at an annualised rate of 1.9 per cent in the third quarter, the Commerce Department announced on Wednesday in its preliminary reading of US GDP, the broadest measure of economic performance. The Commerce Department will update its estimate twice more. The data beat expectations for a 1.6 per cent growth rate.

However, the third quarter marks the first time since the final quarter of 2018 in which the US economy grew at a rate slower than two per cent. Despite the slowdown, the US economy remains relatively unscathed by the trade tensions and was underpinned by continued consumer spending as well as government expenditures, the Commerce Department said.

Meanwhile, German unemployment continued to rise in October as factories remained in the doldrums, increasing the pressure on the government to step in with fiscal stimulus. The number of people out of work increased by a seasonally adjusted 6,000 after falling a revised 9,000 in September, data from the Federal Employment Agency showed on Wednesday. Economists had forecast a rise of 3,000. The jobless rate was unchanged at five per cent in October, in line with expectations, and remained near a record low. Even though the German labour market remains resilient to the economic downturn, its prospects seem to be deteriorating.

Finally, in the UK, consumer confidence plummeted to a joint six-year low in October, as Britons became less optimistic of their personal finances, a report by market research firm GfK showed last week. The key index fell to -14 in October from -12 the previous month, as all the five measures of consumer confidence fell, with households’ assessment of their personal finances for the coming year falling by three points. The index was last this low in August and has not been lower since July 2013.

“The ongoing machinations in Westminster appear to be impacting how we view our personal financial situation for the coming year with a notable fall… in this measure in October,” GfK strategy director Joe Staton said.

This report was compiled by Bank of Valletta for general information purposes only.