News
Economic Growth Slows, but Consumer Spending Soars
US consumer spending grew at the fastest clip in nine years in the fourth quarter, but was not enough to avoid a slower rate of overall economic growth. GDP grew just 2.6%, thanks largely to a stark trade deficit and weak business investing. Economists had predicted a 3% climb. On the bright side, consumer spending jumped 4.3%, a rate last seen in the first quarter of 2006 and well above 3Q14's 3.2% pace.
Plummeting gas prices had a lot to do with the consumer spike. But the oil collapse also contributed to the 1.9% slide in capital expenditure, the biggest drop in over five years.
