U.S. Economic Growth for 4Q 2017 Revised Higher than Expected

Workers assemble built-in appliances at the Whirlpool manufacturing plant in Cleveland, Tennessee August 21, 2013. (Photo: Reuters)

The Bureau of Economic Analysis (BEA) said the U.S. economy grew faster than expected in the fourth quarter (4Q) 2017. The final 4Q reading was revised up 0.4% to 2.9%, making the first year under Donald Trump stronger than the strongest year under Barack Obama.

The median economic forecast was 2.7%.

The U.S. economy has now grown by 3% or more for three consecutive quarters since 2004 and real GDP was 3.2% in the third quarter (3Q). Real gross domestic income (GDI) rose 0.9% in the 4Q, compared with an increase of 2.4% in the 3Q. The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 1.9% in the 4Q, compared with an increase of 2.8 percent in the 3Q.

Real consumer spending was upwardly revised to a solid 4%, beating the 3.8% median forecast.