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Moderation in U.S. Growth Projected at End of Tumultuous 2020

  • Slower growth largely result of downshift in consumer spending
  • Residential construction, manufacturing remain elevated
New York City Reopens Malls While In-Door Dining Remains On Hold
Photographer: Peter Foley/Bloomberg

U.S. economic growth decelerated in the final months of a tumultuous 2020 as a surge in Covid-19 infections suppressed consumer spending even as housing and manufacturing continued to flourish.

The government’s initial estimate of fourth-quarter gross domestic product on Thursday is projected to show a 4.2% annualized gain, according to the median forecast in a Bloomberg survey of economists. While nearly double the average growth pace of the decade-long expansion, it’s a significant slowdown from the third quarter’s record 33.4% surge.