Economics
U.S. GDP Grows Below-Forecast 2.6% on Trade, Inventory Drags
- Consumer spending, business investment signal solid momentum
- Demand, inflation data likely keep Fed on track for rate hikes
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The U.S. economy expanded at a slower-than-projected pace in the fourth quarter on drags from trade and inventories, offsetting strength in consumer spending and business investment that signals solid momentum entering 2018.
Gross domestic product rose at a 2.6 percent annualized rate after 3.2 percent in the prior period, Commerce Department data showed Friday in Washington. The median forecast in a Bloomberg survey called for 3 percent. Consumer spending, the biggest part of the economy, rose 3.8 percent, the best in more than a year. Business equipment investment grew at the fastest pace in three years.