Fourth Quarter GDP

The U.S. economy grew 2.1 percent in the fourth quarter, according to the initial estimate released yesterday by the Commerce Department. For the full year, GDP grew 2.3 percent, below the 2.9 percent increase from 2018 and the 2.4 percent gain in 2017,

Continued gains in consumer spending helped propel the economy in the year’s final quarter, though the rate of increase came in at 1.8 percent, well below the 3.2 percent pace in the third quarter. Still, personal consumption expenditures added 1.2 percentage points to the quarterly rise in GDP.

Other factors in the quarter's growth: Durable goods spending rose 1.2 percent while nondurables saw growth of 0.8 percent, the slowest pace since the first quarter of 2018. Net exports also helped, rising 1.4 percent, while imports fell 8.7 percent, owing to a drop in consumer goods and motor vehicles.