The U.S. economy grew at a seasonally adjusted annualized rate of 2.1 percent in the final three months of 2019.
That was in line with economists’ forecasts. The economy grew at a 2.1 percent rate in the third quarter as well.
Real Gross Domestic Product increased 2.3 percent in 2019, down from 2.9 percent in 2018. Measured from the fourth quarter of 2018 to the fourth quarter of 2010 real GDP increased 2.3 percent during the period, down from 2.5 percent a year prior.
The pace of consumer spending growth weakened to a 1.8 percent rate from 3.2 percent in the third quarter. Business investment continued to be muted. Housing contributed to growth, offsetting the weakness in consumer spending.
Despite the slower rate of growth of consumer spending, personal consumption expenditures added 1.2 percentage points to the quarterly gain. Durable goods spending rose 1.2 percent while nondurables spending rose eight-tenths of a percentage point.
America’s improved trade policies, including tariffs, appear to have added to GDP. Net exports rose 1.4 percent while imports, which are a subtraction from GDP, fell 8.7 percent.
This is the government’s first estimate of Gross Domestic Product for the fourth quarter. A second estimate will be issued at the end of February.