Friday, January 26, 2018

The Fourth Quarter GDP Report

The U.S. expanded at a 2.6 percent annual pace in fourth quarter, the Commerce Department reported this morning. That's a slight slowing from earlier this year: The economy grew at a 3.2 percent pace in the third quarter, and 3.1 percent in the second quarter.

Consumer spending, the main engine of the economy, rose a strong 3.8 percent, the biggest increase in almost two years. Investment in new housing increased 11.6 percent, business spending on equipment surged 11.4 percent and outlays on structures edged up 1.4 percent, according to Commerce Department data.

The down sides: The value of inventories declined by $29.3 billion. Trade was an even bigger drag on GDP; imports jumped 13.9 percent, doubling the 6.9 percent rise in exports. 

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