Friday, March 29, 2019

Final Fourth Quarter GDP Is In

GDP posted a gain of just 2.2 percent in the fourth quarter, the Commerce Department reported yesterday in its final estimate of economic growth. That was down from the previous estimate of 2.6 percent and leaves full-year growth at 2.9 percent.

In all, 2018 was the best year for the economy since 2015 and well above the 2.2 percent increase in 2017. The economy grew 3 percent when compared with the fourth quarter of 2017. If it extends into July, the current economic expansion will then become the longest on record.

The reduction in the fourth quarter GDP number was because of revisions down in consumer spending, government expenditures at the state and national levels, and nonresidential fixed investment. Imports also were revised lower amid continuing tensions between the U.S. and its global trading partners.

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