Categories: Retirement Planning and Investing

U.S. Economy Grew 3.2% in Q4 as Consumer Spending Picked up

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U.S. Economy Grew 3.2% in Q4 as Consumer Spending Picked up (Bloomberg)

The U.S. economy expanded at a 3.2 percent pace in the fourth quarter as Americans’ spending rose the most in three years, signaling clear improvement heading into 2014. The annualized gain in gross domestic product (GDP) matched the median forecast in a Bloomberg survey and followed a 4.1 percent advance during the prior three months, Commerce Department figures showed. Growth in the second half of 2013 was the strongest since the six months ended in March 2012. However, consumer spending rose 3.3 percent, less than estimated. Rise in demand allowed the economy to overcome cuts in government outlays caused by the partial federal shutdown in October. The improved consumer spending may further embolden Federal Reserve policymakers to continue paring its monetary stimulus in the months ahead, after announcing a $10-billion cut to $65 billion a month yesterday.

Paul Dykewicz

Paul Dykewicz is the editor of StockInvestor.com and the editorial director of Eagle Financial Publications in Washington, D.C. He writes and edits for the website, as well as edits investment newsletters, time-sensitive trading alerts and other reports published by Eagle. He also is an accomplished, award-winning journalist who has written for Dow Jones, USA Today and other publications, as well as served as business editor of a daily newspaper in Baltimore. In addition, Paul is the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain." He received his MBA in finance from Johns Hopkins University, where he was a two-time president of the school's Finance Club. In addition, Paul has a bachelor's degree from the University of Michigan and a master's degree in journalism from Michigan State University. Outside of work, Paul volunteers with a faith-based organization to assist the poor in Southeast Washington, D.C., to learn personal finance skills to lift themselves out of debt.