U.S. Economy Slows to 2.9% Growth in 2018
Friday, March 01, 2019
GoLocalWorcester Business Team
The United States economy grew at a pace of 2.9% in 2018, just below President Donald Trump’s goal of three percent, according to the Department of Labor.
The report was delayed due to the five-week government shutdown that ended in January.
According to the Commerce Department, gross domestic product rose at a rate of 2.6% from October through December, surpassing expectations of 2.2% growth.
Consumer spending expanded by 2.8% in the fourth quarter, while business investment grew at a pace of 6.2%.
Effect of Shutdown
The government shutdown lasted 35 days, ending on January 25.
According to the Congressional Budget Office, the shutdown shaved nearly $3 billion from inflation-adjusted gross domestic product in the fourth quarter.
The shutdown also shaved about $8 billion from the first quarter of 2019.