The U.S. economy grew slightly slower in the fourth quarter of 2017 than originally reported according to a report by the Commerce Department released Wednesday.
Commerce revised its original estimate of economic growth in the fourth quarter of 2017 to 2.5% down 0.1% from its earlier estimate. The economy grew 2.3% through 2017 up 1.5% from economic growth in 2016.
Increased consumer spending led to a surge in imports which cut into net production levels and put a dent in GDP growth in the fourth quarter. Consumer spending grew 3.8% in the fourth quarter marking the fast rise in three years.
The Trump Administration expects the economy to grow 3% per year through 2020 due to anticipated stimulus resulting from tax cuts deregulation. However, economist warn that growth could be short-lived and trigger reactionary fiscal policy measures.
Federal Reserve Chairman Jerome Powell said Tuesday that the U.S. is going to see “solid growth and a strong labor market” which should lead to wage growth.