WASHINGTON—Higher estimates for consumer spending led the Commerce Department to revise fourth quarter economic growth upward to 2.9%.
NAFCU Chief Economist and Vice President of Research Curt Long noted in a Macro Data Flash report that consumer spending hit its fastest pace in three years.
"After the revision, GDP growth for the year of 2017 remained at a modest 2.3%," Long said. "Corporate profits declined during the last quarter as companies prepared for tax reform. However, profits are expected to pick up in 2018 as a result of simulative fiscal policies."
The department's Bureau of Economic Analysis released the final fourth quarter estimate this week. The previous estimate had the economy's growth at 2.5%; the third quarter saw 3.2% growth.
In addition to higher estimates for consumer spending, which ended at 4% growth, estimates for inventory investments, nonresidential investments and government spending were also revised upward, noted Long. Residential investments and net exports saw downward adjustments.