US economy grew at steady 2.1 per cent rate in Q4
WASHINGTON — The U.S. economy grew at a slightly faster rate in the fourth quarter than earlier estimates, as consumers ramped up spending that’s expected fuel growth throughout 2017.
The gross domestic product, the economy’s total output of goods and services, expanded at an annual rate of 2.1 per cent in the October-December period, the Commerce Department reported Thursday. The figure is an improvement from the previous estimate of 1.9 per cent. The added strength stemmed from stronger consumer spending, which offset an increased drag from trade.
Many economists project growth of around 2 per cent in the current January-March quarter, but they expect greater strength as the year progresses as bullish consumers keep spending.
“Consumer spending will lead growth thanks to higher incomes from more jobs and rising wages, as well as likely tax cuts,” said PNC Economist Gus Faucher, who predicted GDP growth for all of 2017 at 2.3 per cent.