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- U.S. economy grow slower than initially thought in Q4 2018
U.S. economy grow slower than initially thought in Q4 2018
A report from the Commerce Department showed on Thursday that the U.S.
economy grew slower than initially thought in the fourth quarter of 2018, as personal
consumption expenditures (PCE), state and local government spending, and
nonresidential fixed investment were revised down, but the general picture of
economic growth remains the same.
According to the third estimate, the U.S. gross domestic product (GDP)
grew at a 2.2 percent annual rate in the fourth quarter, lower than 2.6 percent
reported in the second estimate.
Economists had expected the growth rate to be revised down to 2.4
percent.
In the third quarter of 2018, the economy expanded by 3.4 percent.
The increase in real GDP in the fourth quarter reflected positive
contributions from personal consumption expenditures (PCE), nonresidential
fixed investment, exports, private inventory investment, and federal government
spending. Those were partly offset by negative contributions from residential
fixed investment and state and local government spending. Imports, which are a
subtraction in the calculation of GDP, increased in the fourth quarter.
Meanwhile, the deceleration in real GDP growth in the fourth quarter
reflected decelerations in private inventory investment, PCE, and federal
government spending and a downturn in state and local government spending.
These movements were partly offset by an upturn in exports and an acceleration
in nonresidential fixed investment. Imports increased less in the fourth
quarter than in the third quarter.
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