Data: Bureau of Economic Analysis; Note: Shows GDP average over the full year vs. prior year; Chart: Andrew Witherspoon/Axios
U.S. gross domestic product grew at a 2.1%annual rate in the final quarter of last year, theCommerce Department said on Thursday. For all of 2019, economic growth came in at 2.3% — less than the 2.9% in 2018.
Why it matters: The initial estimates from the government show that 2019 was the slowest pace of economic growth since Trump took office. The boost from the tax cuts gave way to pain from the trade war. Exports slumped, while uncertain business leaders held off on spending.
By the numbers: Q4 marked the third straight quarter of declining business investment — i.e. corporations investing in new equipment or factories.
Consumer spending is still solid, but it showed some signs of slowing. The rate of spending was 1.8% in Q4, a drop-off from the 3.2% in the prior quarter.
The bottom line: 2019 GDP came in above the economy's postrecession average of around 2% growth, as Marketwatch points out. Still, annual growth under Trump hasn't hit the administration's promise of 3%.
What they're saying: Heading into an election year, economic growth is "on unsteady footing," thanks to the indefinite production halt of Boeing's 737 Max and "global growth headwinds that may pick up linked to the coronavirus crisis across the globe," Joseph Brusuelas, chief economist at RSM US, wrote in a note to clients.
