bloomberg.com - The U.S. economy grew in the fourth quarter at a 1.9 percent pace, unchanged from an initial estimate, as slower investment by businesses and state and local agencies offset stronger household purchases.
The gain in gross domestic product, the value of all goods and services produced, was smaller than the median forecast in a Bloomberg survey for a 2.1 percent annualized rate. Consumer spending, the biggest part of the economy, rose 3 percent, more than projected, Commerce Department data showed Tuesday in Washington.
The results reinforce the leading role that consumers continue to play in the current expansion, helped by a tight job market, low borrowing costs and rising confidence. Optimism that President Donald Trump will lower taxes, reduce regulation and rebuild infrastructure may also encourage businesses to step up investment this year, contributing to growth.
Economists’ growth estimates ranged from 1.7 percent to 2.6 percent. The GDP release is the second of three for the quarter, with the third scheduled for late March, when more information is available. The economy expanded at a 3.5 percent pace in the third quarter.
The revision showed GDP grew 1.9 percent in the fourth quarter from a year earlier, the same as the initial estimate. That’s about in line with the average 2 percent pace of the current expansion which began in mid-2009. (ontinueReading
No comments:
Post a Comment