Economics

Economic Growth Cools as U.S. Consumers Temper Spending

  • GDP rises at 0.7 percent rate, increases 2.4 percent in 2015
  • Companies cut back on investments in equipment, structures

U.S. Economy Expands at Slower Pace in Fourth Quarter

Lock
This article is for subscribers only.

The U.S. economy expanded at a slower pace in the fourth quarter as households tempered spending and businesses cut back on capital investment and adjusted inventories.

Gross domestic product rose at a 0.7 percent annualized rate in the three months ended in December after a 2 percent gain in the third quarter, Commerce Department figures showed Friday. The advance was in line with the Bloomberg survey median forecast of 0.8 percent.