U.S. economic growth slowed in the fourth quarter as previously reported, with robust consumer spending offset by downward revisions to business and government investment.
Gross domestic product rose at a 1.9 percent annual rate in the final three months of 2016, the Commerce Department said on Tuesday in its second estimate for the period. That matched the estimate published last month.
Economists polled by Reuters had expected fourth-quarter GDP would be revised up to a 2.1 percent rate.
The economy grew 1.6 percent for all of 2016, its worst performance since 2011, after expanding 2.6 percent in 2015.
Economic data early in the first quarter has been mixed, with retail sales rising in January but homebuilding and business spending on capital goods easing.
The economy may get a boost from President Donald Trump's proposed stimulus package of sweeping tax cuts and infrastructure spending, as well as less regulations.
Consumer spending jumps
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, was revised sharply higher to a 3.0 percent rate of growth in the fourth quarter. It was previously reported to have risen at a 2.5 percent rate.
That meant private domestic demand increased at a 3.0 percent rate, faster than the 2.8 percent pace reported last month.
Some of the rise in demand was met with imports, which increased at a 8.5 percent rate rather than the 8.3 percent pace reported last month. Exports declined, leaving a trade deficit that subtracted 1.70 percentage point from GDP growth as previously reported.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, was revised sharply higher to a 3.0 percent rate of growth in the fourth quarter. It was previously reported to have risen at a 2.5 percent rate.
Reference: CNBC
http://www.cnbc.com/2017/02/
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