A report came out today from U.S Commerce Department regarding the last quarter GDP rate. It appears in the last quarter, U.S economy grew at 2.6% rate which was way higher than the 2.2% median growth rate economists had predicted.
The pick up in economic activity is attributed to Republican backed tax cuts. This recent growth rate helps bring the overall annual rate to 3.1 just slightly above the current administration goal of 3% GDP growth rate.
Consume spending continues to show strength on the back of continued growth in the economy The increase in consumer spending followed the third quarter’s 3.5 percent gain. It contributed 1.92 percentage points to growth.
The only negative is the continued drag in the Housing sector. Home sales tumbled in the last quarter of 2018 thanks to increasing mortgage rates.
Inflation remained muted which can be a factor in Fed’s decision to hike the rates in March.