This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-38772657
The article has changed 3 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
US GDP misses forecast with final quarter rise of 1.9% | US GDP misses forecast with final quarter rise of 1.9% |
(35 minutes later) | |
The US economy grew at an annual pace of 1.9% in the fourth quarter of last year. | The US economy grew at an annual pace of 1.9% in the fourth quarter of last year. |
That was slower than the 2.2% growth rate economists had been expecting and below third quarter growth of 3.5%. | That was slower than the 2.2% growth rate economists had been expecting and below third quarter growth of 3.5%. |
For the year, GDP rose by 1.6%, the slowest since 2011 and down on 2015 when the world's largest economy expanded by 2.6%. | |
President Donald Trump has promised to lift GDP to 4%, through tax cuts and infrastructure spending. | |
The last time that America's economy grew at that rate was in 2000, the year of the dotcom boom, when it expanded by 4.1%. | |
While consumer spending rose in the quarter between October to December, the US Commerce Department said there had been a slowdown in exports and an increase in imports. | |
It added that Friday's figure is the first estimate of economic growth and is based on incomplete data. An updated estimate will be released on 26 February. | |
Nancy Curtin, chief investment officer at Close Brothers Asset Management, said the data highlighted how the heightened political climate in the US and Europe had "put a pinch on US growth". | |
However she said: "Growth in jobs and the economy are the primary concerns of the new US administration and the levels of growth which have been talked about are very optimistic. | |
Although she cautioned: "With the president less than one week in office and with key global trade agreements, including with the UK, still yet to be decided, it will be a while before we start to see the true impact of Trumponomics." | |
Optimism about Mr Trump's economic policy has fuelled a rise in optimism which this week sent the Dow Jones Industrial Average through 20,000 for the first time. |