The U.S. economy grew an annual rate of 2.9% in the fourth quarter of 2017, up from a prior estimate of 2.5% and beating Econoday's consensus estimate of 2.7% growth.
The latest reading, however, is slower than the 3.2% growth seen in the third quarter of 2017, according to the latest projection by the Bureau of Economic Analysis. The slowdown in fourth-quarter 2017 real GDP growth reflected a downturn in private inventory investment that was partly offset by accelerations in PCE, exports, government spending, nonresidential fixed investment and residential fixed investment. Imports increased in the fourth quarter of 2017.
The upward revision from the second estimate reflected upward revisions to personal consumption expenditures, or PCE, and private inventory investment, the bureau noted.
The PCE price index increased 2.7% after rising 1.5% in the third quarter of 2017. Excluding food and energy prices, the PCE price index was up 1.9%, compared with an increase of 1.3% in the prior quarter.
For full year 2017, real GDP grew 2.3% compared with an increase of 1.5% in 2016.