The U.S. economy expanded at an annual rate of 1.9 percent in the third quarter of the year, slightly lower than the two-percent growth rate in the second quarter, the Commerce Department reported on Wednesday.

The slower growth of the gross domestic product (GDP) in the third quarter reflected decelerations in personal consumption expenditures and government spending, and a larger decrease in nonresidential fixed investment, according to the department.

Personal consumption expenditures, which account for more than two thirds of the overall economy, grew at an annual rate of 2.9 percent in the third quarter, lower than the 4.6 percent growth pace in the second quarter.

Nonresidential fixed investment, a measure of corporate spending on structures and equipment, fell at an annual rate of three percent in the third quarter, following a contraction of one percent in the previous quarter.

Net exports subtracted a mild 0.08 percentage point from GDP growth in the third quarter after cutting 0.68 percentage point in the previous quarter.

"Trade placed less of a drag on growth in the third quarter than in the second quarter, but for the wrong reasons. Exports and imports both rebounded less than expected over the summer as global trade slowed," said Diane Swonk, chief economist at Grant Thornton, a major accounting firm, adding that business investment "is not likely to pick up until all tariffs are lifted."

The latest GDP figures confirmed that Washington's tariffs against imports from other trading partners continued to take a toll on American businesses and the overall economy.

About 60 percent of respondents, including fund managers, economists and strategists, have cut their growth forecasts for the U.S. economy this year and next due to tariffs, according to a CNBC Fed Survey released on Tuesday.

While recession is not the base case, respondents forecast U.S. economic growth at just 1.75 percent this year, down from 2.9 percent in 2018, and then rebounding to 2 percent in the next two years, the survey showed.

The growth figures came just hours before U.S. Federal Reserve lowered interest rates by 25 basis points to a range of 1.5 percent to 1.75 percent, the third rate cut this year.

The Fed has already lowered rates twice this year, in July and September, amid growing risks and uncertainties stemming from trade tensions and a global economic slowdown.