US Economic Growth Continues To Slow In Last Quarter of 2018
LAHORE MIRROR (Monitoring Desk)– US economic growth slowed to an annualised rate of 2.6 per cent in the last three months of 2018, figures show.
However, the reading was ahead of expectations for a rate of between 1.8 per cent and 2 per cent.
The pace of growth was below the 3.4 per cent rate seen in the third quarter thanks to a slowdown in consumer spending.
The growth figures had originally been due to be released in January, but were delayed because of the 35-day US government shutdown.
The US economy was boosted last year by a big tax cut and an increase in government spending.
Ian Shepherdson, chief economist at Pantheon Macroeconomics, said that the fourth quarter was “not a bad performance” given that the economic boost from the Trump administration’s tax cuts is now fading.
For the full year, GDP grew by 2.9% – just shy of President Donald Trump’s 3% target – compared with 2.2% in 2017.
Mr Shepherdson said he expected that growth in 2019 would revert to the “post-crash trend” of between 2% and 2.5%, “demonstrating that the personal tax cuts offered nothing more than a sugar high, and that the business tax cuts did nothing to lift trend growth. Though they did make shareholders richer”.
SOURCE: BBC NEWS