U.S. economic growth rate revised up to 2.9% in fourth quarter

U.S. economic growth rate revised up to 2.9% in fourth quarter

"This suggests less momentum for consumer spending in the first quarter, so we lowered our forecast of first quarter spending growth one-tenth to 1.4%", Kathleen Navin, director of USA economics at Macroeconomic Advisers by IHS Markit, said.

"We judge the economy by nonfinancial domestic profits, capital spending, and employment and these metrics look solid in 2017", RDQ Economics said in a research note. This would be a very vital piece of an economic docket to assess the health of the economy. That indicates a healthy level of growth and points toward further business investment and job creation, particularly when coupled with the powerful stimulus of last year's large corporate income tax cut. The average of real GDP and real GDI, which serves as a supplemental measure of us economic activity, increased 1.9% in the fourth quarter, compared with an increase of 2.8% in the third.

The price index for gross domestic purchases increased 2.5% in the quarter compared with an increase of 1.7% in the third quarter.

The resulting trade deficit sliced off 1.16 percentage points from GDP growth last quarter, the most in a year, after adding 0.36 percentage point in the third quarter.

In the first two quarters of 2017, GDP grew by 1.4 percent and by 3.1 percent.

China Denies Knowledge of Visit by Top N. Korean Official
However, ties have become strained after Beijing backed United Nations' sanctions against North Korea for its missile program. However, he is not known to have traveled outside the country since assuming power in late 2011 after his father's death.

Consumer spending grew at 4 percent, compared with the earlier estimate of 3.8 percent.

It is expected on the upper side today.

The US economy grew faster than previously estimated in the final quarter of 2017, a report from the Commerce Department showed on Wednesday.

"The drag (from trade) looks less meaningful than we had previously anticipated, likely coming in around a half percentage point", said Daniel Silver, an economist at JPMorgan in NY.

If the actual number comes in line with the expectations, it would be considered quite well and would help in restoring further confidence in the United States economy but if that fails to impress and drops below 2 percent (Unlikely), the dollar might take a big hit to the downside. Trade will likely remain a drag on GDP growth in the first quarter.

Related Articles

  • You Can Now Connect to All Bluetooth Speakers With Google Home

    You Can Now Connect to All Bluetooth Speakers With Google Home

    But this is a great way to experience multi-room audio without having to buy expensive smart speakers for each room. Prior to this update, users have only been able to send audio to Home speakers using Bluetooth on phones.
    Lego The Incredibles Is Up For Pre-order On Amazon

    Lego The Incredibles Is Up For Pre-order On Amazon

    The latest licensed LEGO video game will let players take control of the animated superhero family The Incredibles . Today, Warner Bros, TT Games, The Lego Group, and Disney Pixar have all made me a happy camper.
    Zach Braff jokes he is the person who bit Beyonce

    Zach Braff jokes he is the person who bit Beyonce

    Explaining the biting incident in a preview for TV One's Uncensored, Haddish said: 'I was talking to Jay-Z for a little bit. I've been a huge fan of Haddish ever since seeing her on the big screen and have been constantly rooting for her .
  • Xbox - April 2018 Games with Gold

    Xbox - April 2018 Games with Gold

    IGN's review gave the game an impressive 9.0, calling Visceral's excellent horror title "more than a survival horror game". Finally, from April 16 to April 30, Xbox 360 owners will also get a copy of Dead Space 2 on the house.
    Mad Max Heads Up April's PS Plus Line-Up

    Mad Max Heads Up April's PS Plus Line-Up

    A unique co-op mode lets two players control one auto and split-screen multiplayer are also part of TrackMania Turbo . Vast open wastelands, outlaw bandits, over-the-top action and petrol-guzzling battle cars ... it's a flawless fit.

    Showers into tonight, then more raindrops likely Wednesday

    There will be slow clearing for the late afternoon/evening which will give us a few hints at some sunshine. An active weather pattern will continue through the weekend with on and off rain chances into early April.
  • What's in Shire plc (SHPG) After Today's Huge Increase?

    What's in Shire plc (SHPG) After Today's Huge Increase?

    BMO Capital Markets maintained the shares of WGO in report on Friday, October 13 with "Hold" rating. (UNH)'s stock declined 0.93%. Vantage Advisors Limited Liability Corp has invested 0% of its portfolio in California Resources Corporation (NYSE:CRC).
    Uber to Let California Self-Driving-Car Permit Lapse

    Uber to Let California Self-Driving-Car Permit Lapse

    On Friday, The New York Times reported that the company's own documents showed the testing program was rife with issues. The crash is now being investigated by both the Tempe Police Department and the National Transportation Safety Board.
    Far Cry 5 Microtransactions: Here's How Paid Content Works

    Far Cry 5 Microtransactions: Here's How Paid Content Works

    Basically, the leader of the cult has three "heralds", each occupying about a third of the massive Montana-based map each. Of course, once you get a physical copy, you'll likely have to install the game anyway, which will take additional time.
  • Vaughan claims Aussies cheated in the Ashes

    Vaughan claims Aussies cheated in the Ashes

    Warner was particularly incensed at something said to him by South Africa wicketkeeper Quinton de Kock during the first test. South Africa defeated Australia to take 2-1 lead in the series.
    Irish Government says abortion referendum will take place on 25th May

    Irish Government says abortion referendum will take place on 25th May

    Simon Coveney's plans for a two thirds majority lock on new abortion laws is unconstitutional according to opposition TDs. This means a woman in Ireland is only able to get a legal abortion if her life is in danger.
    Dragon Quest XI arrives on PC and PS4 this September

    Dragon Quest XI arrives on PC and PS4 this September

    Give the localised opening movie a watch and then let us know if you're hyped for Dragon Quest XI in the comments section below. It also has camera mode that allows players to take in views of the lovely landscape and character renders.