Economic growth in the United States rose less sharply in the fourth quarter of 2018 compared to a year earlier. Experts generally took into account that the growth would be less strong. Nevertheless, the percentage of the US Department of Commerce was even lower than anticipated.
The largest economy in the world improved by 2.2 percent on an annual basis. Economists had generally expected a progression of 2.3 percent. In the third quarter there was still a growth of 3.4 percent on an annual basis. In an earlier estimate, a growth of 2.6 percent was reported for the final quarter of 2018.
ING chief economist James Knightley spoke of a step back for the US economy and the weakest growth rate since the first quarter of 2018. Growth in the first quarter of this year is expected to be even lower. The new figures can spur speculation about a possible interest rate cut by the Federal Reserve this year, the economist says. Knightley himself thinks the Fed will leave interest unchanged.
Maurice Esma, a co-founder of EconomicInform is a freelance journalist with the expertise in international finance and corporate rights. The author can be reached by email maurice.eisma@economicinform.com
