US economy grew at 2.2 percent rate in fourth quarter
Source: AP-Excite
By MARTIN CRUTSINGER
WASHINGTON (AP) U.S. economic growth slowed in the fourth quarter and likely cooled even further in the first quarter as severe winter weather takes its toll. But the outlook for the rest of the year looks brighter, thanks to a recovering job market that should boost consumer spending.
The Commerce Department said Friday that the overall economy, as measured by the gross domestic product, grew at an annual rate of 2.2 percent in the October-December period a figure that was unchanged from a month ago. The economy had surged at a 5 percent rate in the third quarter.
In the final look at fourth quarter GDP, consumer spending was more robust than previously estimated but business restocking was weaker.
Consumer spending, which accounts for 70 percent of economic activity, grew at a 4.4 percent rate in the fourth quarter the strongest performance in eight years and even better than the 4.2 percent estimated a month ago. Export growth was also stronger than previously estimated, but those gains were offset by slower growth in business inventories, leaving total GDP unchanged.
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In this photo made on Thursday, Feb. 12, 2015, a man welds parts in fans for industrial ventilation systems at the Robinson Fans Inc. plant in Harmony, Pa. The Commerce Department releases fourth-quarter gross domestic product on Friday, March 27, 2015. (AP Photo/Keith Srakocic)
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