Feb 28, 2018

2017 Q4: Economy Grew at a 2.5 Percent Rate, Fastest Consumer Spending Since 2016

Post by Derek Yale

This morning, the U.S. Department of Commerce released its second estimate of gross domestic product (GDP) for the fourth quarter of 2017, announcing that the U.S. economy expanded at an annualized rate of 2.5 percent, driven primarily by the strongest consumer spending rate seen since the second quarter of 2016. Spending on residential properties increased 13 percent, the largest gain since the first quarter of 2016.

Additionally, today’s release provides another look at how the economy changed during the Trump administration’s first year. Overall, annualized quarterly growth averaged 2.5 percent during 2017, and real after-tax personal income per person increased by $405. Further, the economy recorded its 15th quarter of consecutive growth.

More encouraging, after months of work by congressional leaders and members of the administration, President Donald Trump signed the Tax Cuts and Jobs Act into law late last year. This historic legislation is already spurring job creation, making businesses more competitive, and improving the lives of millions of Americans. To date, over300 businesses have already announced plans to invest in the economy and give more money back to employees.

Below is a deeper look at the numbers from today’s report, what they say about the state of the U.S. economy during President Trump’s first year.