BEA: U.S. GDP Slowed Slightly in Fourth Quarter

U.S. GDP grew by 2.86 percent in fourth-quarter 2017. In its third estimate of GDP, the Bureau of Economic Analysis (BEA) revised the figure upward from its first estimate of 2.53 percent. While still positive, U.S. economic growth in the last quarter of the year showed a decline from the strong performance of the second and third quarters.

Economy.com reported: “U.S. GDP growth remained strong in the fourth quarter even before support from fiscal expansion kicked in. Real GDP grew 2.9 percent, modestly below the 3.2 percent in the third quarter, according to the third estimate from the BEA. Consumer spending dominated growth, accounting for most of the increase in GDP. Fixed investment and government growth also improved, while inventory accumulation slowed, and it and trade became drags on growth. Real disposable income grew a disappointing 1.1 percent, after rising 0.7 percent in the third quarter. The saving rate fell to 2.6 percent, its lowest rate since 2005. Profits fell 0.1 percent (not annualized), after rising 4.3 percent previously. Gross domestic income rose 0.9 percent after rising 2.4 percent in the third quarter.”