U.S. economy cools in fourth quarter, but consumer spending shines
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Source: Reuters
U.S. economic growth slowed sharply in the fourth quarter as weak business spending and a wider trade deficit offset the fastest pace of consumer spending since 2006. The slowdown followed two back-to-back quarters of bullish growth and is likely to be short-lived given the enormous tailwind from lower gasoline prices. Other data on Friday showed consumer sentiment jumped to an 11-year high in January.
Gross domestic product expanded at a 2.6% annual pace after the third quarter's 5%, the Commerce Department said in its first snapshot of fourth-quarter GDP. A gauge of underlying demand, which excludes trade, inventories and government, increased at a 3.9% pace. That compared to the third quarter's 4.1% rate. Analysts said the data indicated domestic fundamentals were strong enough to cushion the blow on growth from weakening overseas economies.
For all of 2014 the economy grew 2.4%, compared to 2.2% in 2013. The report came two days after the Federal Reserve said the economy was growing at a "solid pace," an upgraded assessment that keeps it on track to start raising interest rates this year.
Read more: http://www.reuters.com/article/2015/01/30/us-usa-economy-idUSKBN0L30BC20150130
It should be noted as well that since President Obama took office, GDP has grown by an average of 2.2% - compared to 1.6% during the Bush administration.
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