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MNI BRIEF: US GDP Growth Slowed More Than Expected In 4Q

Growth slowed to 2.3% annual rate from 3.1% in the third quarter.
USCentral Bank NewsPolicy NewsFederal ReserveBriefStoryNorth America

MNI (WASHINGTON) - U.S. GDP growth slowed by more than expected in the fourth quarter to a 2.3% annual rate from 3.1% in the third quarter, dragged down by a decline in investments even as consumption ramped up. PCE inflation, the Fed's preferred measure of prices, jumped to 2.3% from 1.5% in the previous quarter, while core inflation rose to 2.5% from 2.2% in the third quarter. 

Wall Street had expected growth to be 2.6% in the quarter. Consumer spending ramped up to 4.2% from 3.7% in the previous quarter while final sales to private domestic purchasers fell back two-tenths to 3.2%. Private investment made a negative contribution to growth, down 5.6% from 0.8% in the third quarter. The Federal Reserve kept interest rates on hold Wednesday, with Chair Powell saying more progress on inflation is needed before further reductions. (See: MNI POLICY: Fed To Hold Door Open To Steady Rate Cut Path)

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MNI (WASHINGTON) - U.S. GDP growth slowed by more than expected in the fourth quarter to a 2.3% annual rate from 3.1% in the third quarter, dragged down by a decline in investments even as consumption ramped up. PCE inflation, the Fed's preferred measure of prices, jumped to 2.3% from 1.5% in the previous quarter, while core inflation rose to 2.5% from 2.2% in the third quarter. 

Wall Street had expected growth to be 2.6% in the quarter. Consumer spending ramped up to 4.2% from 3.7% in the previous quarter while final sales to private domestic purchasers fell back two-tenths to 3.2%. Private investment made a negative contribution to growth, down 5.6% from 0.8% in the third quarter. The Federal Reserve kept interest rates on hold Wednesday, with Chair Powell saying more progress on inflation is needed before further reductions. (See: MNI POLICY: Fed To Hold Door Open To Steady Rate Cut Path)