- U.S. Economic Growth Revised to 2.5% in Fourth-Quarter
The world’s largest economy grew at slightly slower pace than previously estimated in the final quarter of 2017.
According to the Commerce Department report, U.S. economy grew at annualized rate of 2.5 percent in the fourth quarter, down from 2.6 percent.
However, consumer spending climbed 3.8 percent, following a 2.2 percent growth in the third quarter.
The report also showed wages and salaries were revised higher for the third and fourth quarters. Pay increased $97.4 billion in the third quarter, an upward revision of $18.3 billion. Fourth-quarter wages were revised up to $91.3 billion.
Business outlays were also solid, contributing 0.82 percentage point to growth. The latest results were boosted by residential investment and government spending as well.
Final sales to domestic purchasers, which strip out trade and inventories — the two most volatile components of the GDP calculation — climbed an unrevised 4.3 percent, the strongest since the third quarter of 2014.