US Economy Grows More Slowly Than Expected

[onebyone]

FILE - containers wait to be unloaded from a ship at the Port of Baltimore in Baltimore.

The U.S. economy grew at a 1.9 percent pace in the last three months of 2016.

Friday's report from the Commerce Department is lower than most economists expected.

The Gross Domestic Product is the sum of all the goods and services produced in a nation and is the broadest measure of economic health.

The U.S. GDP expanded 1.6 percent in 2016, which is less than the prior year.
The world's largest economy is in "decent, if unspectacular" shape according to PNC economist Gus Faucher. He says consumer spending is growing steadily due to job gains and wage growth, which will help the economy expand this year. Efforts to cut taxes and regulation could also help by boosting business investment. PNC predicts the U.S. economy will grow about 2.4 percent in 2017.

Economists at Wells Fargo say possible increases in government spending on the military and infrastructure could boost growth, but caution that more spending could push up inflation, which may prompt the U.S. central bank to raise interest rates. The Fed's effort to cool inflation might also cool growth.

Initial GDP estimates may be revised over the next two months as more complete data becomes available.


http://www.voanews.com/a/us-economy-grows-more-slowly-than-expected/3695385.html

 

[onebyone]

U.S. economic growth slowed in 2016 to 1.6%


Last Updated Jan 27, 2017 10:03 AM EST

WASHINGTON — The U.S. economy lost momentum in the final three months of 2016, closing out a year in which growth turned in the weakest performance in five years, with the yearly rate down to 1.6 percent.

That compares unfavorably to 2.6 percent in 2015 and 2.4 percent in 2014.

The Commerce Department says the gross domestic product grew at an annual rate of just 1.9 percent in the October-December period, a slowdown from 3.5 percent growth in the third quarter. GDP, the broadest measure of economic health, was held back by a jump in the trade deficit.

This was slightly down from economists’ consensus of 2.2 percent. But it is in keeping with the typical GDP increase of around 2 percent in recent years.


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Potential impact of President-elect Trump's economic plans
For all of 2016, the economy grew 1.6 percent. It was the worst showing since 2011 and down from 2.6 percent growth in 2015.

President Donald Trump has set a goal of doubling growth through an ambitious stimulus program featuring tax cuts, deregulation and higher infrastructure spending.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, noted that the change in foreign trade key subtracted a substantial 1.7 percentage points from GDP growth. He attributed that to a reversal of most of the third quarter’s increase in soybean exports, and said he expected the situation to improve in this year’s first quarter.

Veronica Willis, investment strategy analyst for Wells Fargo Investment Institute, projected that GDP would come in at 2.1 percent this year, “driven by strong consumer spending, improving business investment, and inventory expansion.”

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http://www.cbsnews.com/news/u-s-economic-growth-slowed-in-2016-to-1-9/

 

[rocketfish]

4.5% is very slow.

 

[Jlaw]

Once Trump build the wall, deport all illegal Mexicans, ban more people from Islamic countries from entering US, put more protectionist policies in place...
will make US great again

 

[c-dome1]

undergroung tunnels is the probems

 

[Beast]

Once Trump build the wall, deport all illegal Mexicans, ban more people from Islamic countries from entering US, put more protectionist policies in place...
will make US great again

It will make US safer but at expense of economy. Actually in US, fast economy grow only help the mega rich. The poor will only get poorer. Most ordinary american will prefer a stagnant economy. But trump still needs the money for his ambition plan. I suggest US super carrier to cut down to six. Cut down half of US overseas base. Cut down half the number of destroyer USN has. It will save US lots of money for his other ambition. End of the day, the myth that US can really print money is fake!

 

[somebozo]

US economy is 20 Trillion and 1.9% of that is a very big number as compared to, let say 4.5% of 2 Trillion...

 

[c-dome1]

mexico will pay for the wall usa will stop import from mexico and mexico collapse