The U.S. economy in the final quarter of last year grew at a slightly slower rate after adjusting for inflation than previously estimated. GDP expanded at an annual pace of 3.2 percent, down from the initial estimate of 3.3 percent. Inflation rates were revised slightly upwards, with core inflation higher than originally estimated.
Key Points
GDP grew at an annual pace of 3.2 percent in the final quarter of last year
Core inflation rate was revised upwards to 2.1 percent
Consumer spending and business investment showed positive trends
Pros
GDP growth in the fourth quarter was higher before adjusting for inflation
Unemployment rate fell to 3.7 percent
Cons
Inflation appears to be on the rise again
Private investment growth rate was lower than expected