The Commerce Department announced on Thursday that the Gross Domestic Product grew by an anemic 1.5 percent for the third quarter. This was a stark dive from the 3.9 percent growth experienced by the country in the second quarter. The American economy has slowed markedly as businesses continue to lay off, not hire, evaluate their positions, and try to reduce their inventories. If there is any growth going on during this weak recovery, it is coming from the American consumer, and the housing industry, and not American business.

Drawing down on inventories, rather than hiring and increasing production, cut a full point and nearly a half off the GDP final number, according to The Wall Street Journal. Most American businesses are concerned about the economic slowdown around the world and are highly hesitant to take on workers or to stock their inventories. Even with the traditional holiday season coming up, American companies remain cautious. The energy sector has slumped and that has hurt as well as the dollar showing strength which is hurting exports.

Companies continue to let inventories run down from warehouses and from store shelves rather than expand production in an effort to meet future demand. Again, the American consumer seems to be carrying the load. Consumer spending was up this quarter 3.2 percent with much of it being in residential spending. More Americans are spending on their homes with upgrades and repairs. This residential investment, which includes home building, jumped a significant 6.1 percent in the third quarter.

Many analysts and economists see the GDP numbers in a positive light. The Federal Reserve, in response, did nothing on Wednesday regarding the raising of their overnight rate. The rate has been near zero for many months. The Labor Department revised its unemployment claims to 260,000 for last week. The Labor Department said that this is the lowest the unemployment claims numbers have been since Nixon was president.