The U.S. economy grew slightly slower in the final months of 2017 than first reported, the Commerce Department reported Wednesday.
Commerce revised its first estimate of economic growth in the fourth quarter of 2017 to 2.5 percent, down 0.1 percent from its earlier estimate. The economy grew 2.3 percent through 2017, up from 1.5 percent in 2016.
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Soaring consumer spending put a dent in gross domestic product growth in the fourth quarter, fueling a surge in imports that cut into net production levels. Consumer spending grew 3.8 percent in the fourth quarter, the quickest rise in three years.
The Trump administration expects the economy to grow 3 percent per year through 2020, citing impending stimulus from tax cuts and deregulation. But economists warn that any bump in growth could be short-lived and trigger reactionary pressures.
Federal Reserve Chairman Jerome Powell said Tuesday that the U.S. is enjoying “solid growth and a strong labor market,” and pointed to increases in consumer spending, wage growth, demand for U.S. exports and business investment.
He also said tax cuts should lead to wage growth, but wasn’t able to say by how much wages would grow.