2017.02.2809:07:00UTC+00U.S. GDP Growth Unrevised At 1.9% In Fourth Quarter

Economic growth in the U.S. in the fourth quarter of 2016 was unrevised in the latest report released by the Commerce Department on Tuesday.

The report said gross domestic product increased by 1.9 percent in the fourth quarter, unrevised from the previous estimate. Economists had expected the pace of growth to be upwardly revised to 2.1 percent.

The unrevised GDP growth in the fourth quarter is notably slower than the 3.5 percent jump seen in the third quarter.

The Commerce Department said consumer spending climbed by an upwardly revised 3.0 percent in the fourth quarter compared to the previously reported 2.5 percent increase.

However, the upward revision to consumer spending growth was offset by downward revisions to state and local government spending and non-residential fixed investment.

The slowdown in the pace of GDP growth compared to the third quarter was partly due to the impact of trade amid a sharp pullback in soybean exports.

The report showed a downturn in exports along with an acceleration in imports, which are a subtraction in the calculation of GDP.

Exports tumbled by 4.0 percent in the fourth quarter after jumping by 10.0 in the third quarter, while imports surged up by 8.5 percent following a 2.2 percent increase in the previous quarter.

Trade subsequently reduced GDP by 1.70 percentage points in the fourth quarter after contributing 0.85 percentage points in the third quarter.

A reading on core consumer prices, which exclude food and energy prices, showed that the pace of price growth slowed to 1.2 percent in the fourth quarter from 1.7 percent in the third quarter.