The U.S. economy in the fourth quarter 2018 grew at a rate slower than previously estimated. On a year-over-year basis, however, growth inched closer to President Donald Trump’s vision.
On Thursday, the U.S. Commerce Department reported that gross domestic product (GDP) grew +2.2% in Q4, compared to Q3. That was a downward revision from the Dept.’s prior estimate of +2.6% growth for Q4. Consumer spending, government expenditure, and nonresidential fixed investment were all revised down.
Fourth quarter also marks a slowing of growth compared to the third’s quarter’s +3.4%. However, Q4 GDP rose +3% from the year-ago quarter. In 2017, Donald Trump’s administration had promised to push the annual growth of GDP to +3% while championing tax cuts.
Nonresidential fixed investment, increased +5.4%, higher than the +2.5% growth in the third quarter.