US economic growth falls back in fourth quarter as trade deficit widens
Weaker trade performance and lower household spending led to a fourth-quarter reduction in the rate of US economic growth, which fell short of forecasts
Washington — US economic growth slowed more than forecast last quarter on the biggest drag from trade in six years and more moderate consumer spending. But business investment picked up, which may be a harbinger of faster expansion in 2017. Gross domestic product, the value of all goods and services produced, rose at 1.9% annualised after the third quarter’s 3.5% gain, according to Commerce Department data issued on Friday in Washington. The median forecast in a Bloomberg survey was 2.2%. Consumer spending, the biggest part of the economy, rose 2.5%, in line with projections. The results cap growth of 1.9% for the full year — near the average pace of the current expansion — and reinforce the leading role of household purchases while showing that businesses are starting to spend again. The strong job market and optimism among consumers and companies for President Donald Trump’s policies are likely to keep growth humming along in 2017. "The economy has strong underlying fundamentals,"...
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