BLOOMBERG: Consumer spending that rose at the fastest pace in three years helped the U.S. economy grow at a 3.2 percent pace in the fourth quarter, overcoming government cutbacks and laying the foundation for a stronger expansion.
The rate of growth in the world’s largest economy followed a 4.1 percent advance in the prior three months, Commerce Department figures showed today in Washington. Household purchases climbed at a 3.3 percent pace, the best performance since the end of 2010.
The pickup in demand was broad based as business investment and exports also accelerated, overshadowing the damage from the 16-day partial shutdown of federal agencies and budget cuts. Diminishing fiscal restraint this year and progress in the labor market will probably sustain economic growth, which explains why the Federal Reserve decided to pare stimulus… (more)
