US Economic Growth In Q4 Revised Up To 2.9 Percent

The US economy grew at a solid 2.9 percent annual rate in the final three months of last year, a sharp upward revision that caps three straight quarters of healthy growth.

The gross domestic product, the country's total output of goods and services, grew at a faster clip than its previous estimate of 2.5 percent, the Commerce Department reported on Wednesday. The gain followed increases of 3.1 percent in the second quarter and 3.2 percent in the third quarter.

The updated growth figure reflected in part more spending by consumers in services including auto repairs. Overall consumer spending grew at the fastest pace in three years.

For the year, the GDP expanded 2.3 percent, a solid rebound from a 1.5 percent increase in 2016, which had been the weakest showing since the last recession ended in 2009.

President Donald Trump often points to the pickup in growth last year as evidence that his economic program of tax cuts, deregulation and stronger enforcement of trade deals is already having a positive impact.

"On balance, the stimulus coming from the tax cuts could be a net negative for the economy over time because of the rising budget deficits. That will lead to rising interest rates and I expect that will slow economic growth in 2020 and beyond," said Sung Won Sohn, an economics professor at California State University, Channel Islands. (AP)