U.S. GDP revised sharply down

Credit: Reuters Studio
Published on March 28, 2019 - Duration: 01:29s

U.S. GDP revised sharply down

The U.S. economy slowed more than initially thought in the fourth quarter.

As Fred Katayama reports, annual growth missed the Trump administration's target.

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U.S. GDP revised sharply down

Further confirmation Thursday that economy slowed down at the end of last year.

U.S. GDP for the fourth quarter was even weaker than previously thought.

The Commerce Department now says the economy grew at a 2.2 percent annualized rate, down from the 2.6 percent estimated earlier.

Consumer and business spending grew by less than first reported.

What's more, corporate profits fell by the most in a year.

Higher government spending and the $1.5 trillion in tax cuts seemingly couldn't pump the economy enough to meet the Trump Administration's 3 percent target.

For all of 2018 economic growth came in just short of that goal - at 2.9 percent.

Still, growth last year was the strongest since 2015.

But investors are growing worried that the economy's best days are behind it… International Assets Advisory CEO, Ed Cofrancesco: SOUNDBITE: INTERNATIONAL ASSETS ADVISORY CEO, ED COFRANCESCO (ENGLISH) SAYING: "People are really concerned that we're going to enter a recession.

We're overdue for a correction in the U.S..

Equity markets.

There were people talking that maybe the European economy would pick up and bail us all out, but that apparently isn't happening.

In fact, their picture looks far worse than us right now." Recent data indicate weakness in retail sales, manufacturing and homebuilding.

The economy faces many headwinds: stimulus is fading, the U.S. trade war drags on with China, and Britain's attempted exit from the European Union is a mess.

But if the U.S. economy can keep growing until this summer, it will be the longest expansion on record.

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