Friday, March 1, 2019

A Strong Fourth Quarter GDP Report

U.S. economic growth was solid at the end of 2018, with GDP rising 2.6 percent, according to a first estimate the Commerce Department released yesterday. For the year, annual 2018 real GDP increased by 2.9 percent.

The biggest driver was non-residential investment, which is primarily business spending, which picked up with a 6.2 percent increase from 2.5 percent in the third quarter. This figure remained strong even as investing in structures declined 4.2 percent. Fixed investment growth of 3.9 percent – up from 1.1 percent in the third quarter – was driven by spending in research and development. R&D spending totaled $425 billion in the fourth-quarter, representing a 9.9 percent year-over-year increase.

Exports rose 1.6 percent in the quarter, reversing a 4.9 percent decline in the previous quarter. Imports increased by 2.7 percent, making trade overall a slight net negative on GDP.

No comments:

Post a Comment