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US economy grew more slowly in 2018 than previously thought

Posted at 5:31 AM, Jul 26, 2019
and last updated 2019-07-26 08:31:07-04

WASHINGTON (AP) — The government says the U.S. economy grew more slowly in 2018 than it previously estimated, downgrading its estimate from 3% to 2.5%. President Donald Trump had frequently boasted of the 3% growth figure as evidence that his policies invigorated the economy.

The Commerce Department lowered its estimate of growth from the fourth quarter of 2017 to the fourth quarter of 2018 mainly because businesses spent less on buildings, equipment and software than it had earlier thought.

The department made the change based on more comprehensive data as part of its annual revisions to gross domestic product, or GDP, the broadest measure of the nation’s output of goods and services. The revisions cover the five years from 2014 through 2018.