GDP Rises 2.2% in Fourth Quarter
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iStock/Thinkstock(WASHINGTON) — The U.S. economy grew at a slower pace in the fourth quarter, according to the latest report from the Commerce Department.
The gross domestic product rose at annual rate of 2.2 percent, compared with 5 percent in the third quarter.
Looking ahead, economists expect to see a similar or weaker showing in the first quarter because of severe weather.
“We’re all aware of the severe winter weather that we went through. It was unusually severe this year compared to prior years. So we will see a little bit of an effect on consumer spending and business spending from that angle,” says Wells Fargo economist Michael Brown.
But Brown predicts stronger growth for the rest of the year.
“A lot of the effects in the first quarter that were negative, were weather-related. The good news is we should make up a lot of that demand in the second quarter. So we’re looking for much more robust economic growth, somewhere around 3-percent or more, throughout the rest of this year,” he says.
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