U.S. Economy Grew 3.2 Percent in Fourth Quarter

The economy grew 3.2 percent in the final quarter of 2013. The pace of expansion in October, November and December slowed a bit from the third quarter, when the economy grew at an annual rate of 4.1 percent.

 

For all of 2013, according to the Commerce Department, the economy expanded at an annual rate of 1.9 percent. That was down from 2.8 percent in 2012.

 

Economists noted that inventory additions tend to pull growth forward, which suggests the economy could slow a bit in the first quarter of 2014 as those stockpiles are drawn down. Economists estimate the economy will expand by 2.5 percent in the January, February and March period.

 

The unemployment rate has fallen substantially in the past 12 months, to 6.7 percent in December.  Much of that drop has been caused by workers dropping out of the labor force rather than finding jobs. (NYT, 1/30/2014)