US fourth-quarter GDP revised down; profits weaker
The revisions reflect markdowns to consumer and business spending, as well as government outlays and investment in home building
Washington — The US economy slowed more than initially thought in the fourth quarter, keeping growth in 2018 below the Trump administration’s 3% annual target, and corporate profits failed to rise for the first time in more than two years. GDP increased at a 2.2% annualised rate, the commerce department said on Thursday in its third reading of fourth-quarter GDP growth. That was down from the 2.6% pace estimated in February. The economy grew 3.4% in the third quarter. The expansion will be the longest on record in July. The revisions to the fourth-quarter GDP reading reflected markdowns to consumer and business spending, as well as government outlays and investment in home building. For all of 2018, the economy grew 2.9% as previously reported, despite the White House’s fiscal stimulus of $1.5-trillion in tax cuts and more government spending. Growth in 2018 was the strongest since 2015 and was an acceleration from the 2.2% logged in 2017. Compared with the fourth quarter of 2017, t...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.