U.S. economic growth slows less than expected in fourth quarter

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U.S. economic growth slows less than expected in fourth quarter
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The U.S. economy slowed less than expected in the fourth quarter amid solid cons...

WASHINGTON, - The U.S. economy slowed less than expected in the fourth quarter amid solid consumer and business spending, leaving 2018 growth just shy of the Trump administration’s 3 percent annual target.

Trump has touted the economy as one of the biggest achievements of his presidency and declared last July that his administration had “accomplished an economic turnaround of historic proportions.” The Commerce Department said while it could not quantify the full effects of the shutdown, it estimated the partial closure had subtracted about one-tenth of a percentage point from fourth-quarter GDP growth through “a reduction in the labor services supplied by federal employees and reduction in intermediate purchases of goods and services by nondefense agencies.”

The economy is cooling as the boost from the White House’s $1.5 trillion tax cut and increased government spending fades. Growth is also being restrained by a trade war between the United States and China, which economists say is making businesses and households more cautious about spending. Trade tensions with China could constrain the economy for a while. U.S. Trade Representative Robert Lighthizer told lawmakers on Wednesday that Washington’s issues with China were “too serious” to be resolved with promises from Beijing to buy more American goods and a threat of higher tariffs could loom over trade with China for years.

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