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Q4 GDP growth revised downward

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Q4 GDP growth revised downward

Growth braked more sharply than expected.

US estimated real gross domestic product increased at an annual rate of 2.2% in the fourth quarter, down from the original estimate of 2.6%, according to a Commerce Department report issued today.  This follows two quarters of strong growth, including a rate of 5.0% in the third quarter. 

Economists had expected a revision to 2.1%. 

The primary driver of the downward revision was business spending on equipment, which was revised from a 1.9% increase to a 0.9% increase. 

Growth was dampened in the fourth quarter by weak business spending and a widening trade deficit.  But given the numerous positive indicators in terms of energy prices, consumer confidence and the labor market, the Q4 lull is expected to be short-lived. 

The full report can be found here.

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