Economics
U.S. Growth Cools on Trade Drag as Business Spending Rises
- Economy expands at 1.9% pace, consumer spending climbs 2.5%
- Inventories, housing, governments help boost GDP gains
U.S. Economic Growth Slows to 1.9% in Fourth Quarter
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U.S. economic growth slowed more than forecast last quarter on the biggest drag from trade in six years and more moderate consumer spending. Business investment picked up, which may be a harbinger for faster expansion in 2017.
Gross domestic product, the value of all goods and services produced, rose at a 1.9 percent annualized rate following the prior quarter’s 3.5 percent gain that was the largest increase in two years, Commerce Department data showed Friday in Washington. The median forecast in a Bloomberg survey called for a 2.2 percent advance. Consumer spending, the biggest part of the economy, climbed 2.5 percent, in line with projections.