Economy grew 2.6% in the fourth quarter
Paul Davidson, USA TODAY 1:20 p.m. EST January 30, 2015
The economy grew more slowly than expected in the fourth quarter as government spending fell sharply and business investment pulled back.
Gross domestic product expanded at a seasonally adjusted annual rate of 2.6% in the three months ended Dec. 31, slowing sharply from a robust 5% pace in the third quarter, the Commerce Department said Friday. Economists expected 3.1% growth.
For all of 2014, the economy grew 2.4%, up from 2.2% in 2013, after harsh winter weather early in the year caused the economy to shrink in the first quarter.
In the fourth quarter, consumer spending, which accounts for more than two-thirds of the economy, grew a healthy 4.3% as plunging gasoline prices and strong job growth bolstered Americans’ confidence.
But government spending declined 7.5% as defense outlays tumbled after rising sharply in the third quarter.
https://www.usatoday.com/story/money/business/2015/01/30/economy-4q-gdp-first-estimate/22548329/