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