U.S. Economy Was Sluggish In Q4, Consumer Spending Expanded

Financial Markets, Bonds, Stock Market

Despite strong consumer spending, U.S. economic growth slowed in Q4.

The Commerce Department announced Tuesday gross domestic product increased at a 1.9% annual rate in Q4 2016, Reuters reports. That rate represents quite a slowdown from the 3.5% growth in Q3, and is largely due to less business and government investment than expected.

During 2016, the economy expanded 1.6%, marking the worst year since 2011 and a full percentage point behind 2015. Consumer spending was the only bright spot. The Commerce Department said it grew 3% in Q4, sharply up from the previous 2.5% estimate. Consumer spending makes up more than two-thirds of U.S. economic activity.

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