US GDP growth slows to 2.6 percent in fourth-quarter, missing estimates
Jan 27, 2018, 16:45
The advanced official estimate of US GDP showed the economy grew at a 2.6% pace in the fourth quarter, behind economists´ forecasts of 3%.
The Commerce Department said the increase in GDP in the fourth quarter reflected positive contributions from consumer spending, non-residential fixed investment, exports, residential fixed investment, and government spending.
Ironically, the disappointing GDP numbers may be the result of increased imports in the era of "America First".
Still, consumer spending, the biggest contributor to growth, grew at its fastest pace in more than a year.
There are still plenty of good signs even without getting the psychological hat trick on breaking the 3% barrier three quarters in a row. Those could all be factors, but doesn't the biggest tax reform in more than 30 years stand a pretty decent chance of making an impact as well? They went up 6.9%, with exported goods rising 12.6% for its best performance in years. Residential construction increased at a 11.6% annualized rate, contributing 0.42 percentage-point to growth.
The nations economic dashboard indicates that the United States is poised for faster growth.
Forcasts predicted the longest streak since 2005 with the third straight quarter of 3 percent-or-better growth.
Friday's report from the Commerce Department also shows an uptick in government spending, just as taxes are being lowered and the growth rate is found to be sagging.
The New York Times notes, "Combined with a sinking jobless rate, a surging stock market and a sunny outlook, the estimated overall 2.3 percent rise in the nation's output a year ago is a sign of the American economy's continuing resilience".
GDP, the value of everything produced domestically, rose at an annualized rate of 2.6% from October through December. Imports, which are a subtraction in the calculation of GDP, accelerated.
While output growth is modestly accelerating, progress is less advanced than the back-to-back GDP results exceeding 3% in the second and third quarter suggested.
The growth rate's deceleration relates to a downturn in private inventory investment.
"The data right now look very consistent with the CEA view that the economy is growing at rate that is going to be going into next year north of 3 percent", Hassett told Fox Business. The latest gain in consumer spending added 2.58 percentage points to growth. Even with steady hiring and the lowest unemployment rate since 2000, wage increases remain tepid, one reason economists expect households may take a breather from splurging this quarter.
Trump has said his tax plan will serve as "rocket fuel" for the economy by prompting Americans to spend more and businesses to step up investment. But despite this better-than-expected figure, overall, 2017 saw Britain record the slowest growth for five years.
However, the Office for National Statistics (ONS) said the broader picture was "slower and more uneven" growth.
The state bears some responsibility for ensuring that children are getting the basics of a good education and that they are safe. All it takes is for one sibling hungry for parental approval - or extra food - to let slip that an escape is being planned.
The below-quota rate goes down to 18 percent and 16 percent in the second and third years, respectively. The tariff also allows 2.5 gigawatts of unassembled solar cells to be imported tariff-free each year.
Besides, ample stocks position following higher supplies from producing regions too fuelled the downtrend. Dollar. 2017 began with oil prices climbing in the $45-55 range to end the year near $67 a barrel.
Apple is making some improvements to its ARKit augmented reality platform as well, which it launched in the fall with iOS 11. Apple adds that the improved ARKit will be able to better recognise irregular shaped surfaces, such as circular tables.
For the hundreds of people marching through campus chanting "time's up MSU", the resignation of former president Lou Anna K. The NCAA announced this week it planned to investigate the Michigan State athletic department amid the Nassar revelations.
Witnesses in the area described hearing the crash. "You had to hear it; it was loud!" one witness said. "It was a sonic boom". Bystanders then began pointing at the man, and the troopers pounced on him, forcing him to the ground.
Communication between the United States and Turkey has continued over Syria, despite the countries' differences. Both the USA and Turkey might support an autonomous YPG enclave as long as it is not affiliated with the PKK.
As train arrives, he gets knocked down by the train and the video ends with a thud as people are heard rushing towards him. A voice in the background told Shiva he was standing perilously close to the train tracks, to which Shiva paid no heed.
Croat Cilic , the sixth seed, said it was "sad" to win in such a way but added that "I played great tennis, very high level". Training with one of the world's best players only helped Edmund . "It is an fantastic feeling", beamed Edmund courtside.