/Here comes GDP…
Here comes GDP...

Here comes GDP…

FILE- In this Aug. 14, 2018, file photo workers stock the shelves at a Home Depot store in Passaic, N.J. Home Depot Inc. reports financial results Tuesday, Feb. 26, 2019. (AP Photo/Ted Shaffrey, File)Associated Press
  • Gross domestic product was expected to expand at 2.2% in the fourth quarter. 
  • The labor market was strong between October and December, but expectations for economic growth have dimmed. 
  • The report was delayed due to the government shutdown that ended in January.

The American economy grew at a slower but still solid pace at the end of 2018.
Gross domestic product expanded at an annualized rate of 2.6% October through December, the Bureau of Economic Analysis said Thursday, compared with expectations for 2.2% growth. The release was delayed due to the 35-day partial government shutdown that ended in January.
GDP for the third quarter was unrevised at 3.4%.
“Fourth quarter GDP growth likely was constrained by foreign trade, inventories and sluggish capex,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics. “Growth probably will be revised higher, but the run of 3%-plus GDP prints is over.”
The unemployment rate held near historic lows throughout the fourth quarter, and there were signs of upward pressure on wages. But expectations for growth have dimmed, with a series of data releases raising concerns about soft spots in the economy in recent weeks.
“A healthy labor market has typically been a strong signal for solid consumption and economic growth in the U.S., but weaker  than expected retail sales data from December has cast doubts on how resilient the U.S. economy is from the weight of slowing global growth,” said Charlie Ripley, a senior investment strategist at Allianz Investment Management.
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