The growth in the economy in the fourth quarter of 2017 was boosted to 2.9 percent from 2.5 percent, the Commerce Department reported in its third and final estimate yesterday. The U.S. fell just short of 3 percent growth, after racking up gains of 3.2 percent in the 2017 third quarter and 3.1 percent in the second quarter. It would have been the first time since 2004-2005 that the economy expanded by 3 percent in three straight quarters.
The economy got a big lift from consumer spending at the end of the year and businesses also increased investment. Consumer spending was revised to show a 4 percent increase instead of 3.8 percent. That’s the largest gain since the end of 2014.
Businesses also spent a bit more than previously estimated. Investment in structures such as office buildings and drilling platforms was raised to 6.3 percent from 2.5 percent. The value of unsold goods, or inventories, was also revised up sharply to $15.6 billion.
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