The U.S. gross domestic product (GDP) growth rate for the fourth quarter of last year (preliminary figure) was 2.3%.
The U.S. Department of Commerce noted on the 30th (local time) that the GDP growth rate for the fourth quarter of last year (preliminary figure) was recorded at an annualized 2.3%. This figure is lower than last year's third quarter (3.1%). It was also below the expert forecasts compiled by Bloomberg and Reuters (2.6% to 2.7%).
The annual growth rate for last year was recorded at 2.8%.
Reuters diagnosed that last year's third quarter did not continue the strong growth trend and showed signs of slowing down. In contrast, the Associated Press analyzed that solid consumer spending helped maintain a robust pace.
Personal consumption, which accounts for about two-thirds of U.S. GDP, increased by 4.2% (annualized quarter-over-quarter) thanks to a strong labor market. This indicates that consumer spending led the overall U.S. economy.
Amid the recent Federal Open Market Committee (FOMC) meeting, where the Central Bank held the benchmark interest rate steady, the personal consumption expenditures (PCE) measure that the Federal Reserve uses for inflation registered at 2.3%. This is an increase from 1.5% in last year's third quarter. The year-over-year growth rate of the core PCE price index compared to the fourth quarter of last year was 2.5%, exceeding 2.2% in last year's third quarter, the Associated Press added.