US Q4 GDP up 3.1%

US Q4 GDP up 3.1%

US economic growth slowed in the fourth quarter to 3.1% annually, the Commerce Department said today. 2004 GDP (Gross Domestic Product) grew by 4.4% to $11.7 trillion. The highest real growth since 1999's 4.5%. In the fourth quarter, consumer spending and business investment supported the economic growth. Despite a weaker dollar, the international trade had a little impact on GDP growth. The fourth quarter GDP growth decelerated from the third quarter due to lower exports, higher imports and a slowdown in consumer spending on durable goods. Exports of US-made goods and services declined 3.9% while imports rose 9.1%. The net trade balance subtracted 1.7 percentage points from growth. Consumer spending grew by 3.8% in 2004. Fixed-business and equipment and software investments rose 10.3% and 13.4% respectively. Exports grew 8.1% in 2004 while imports rose 9.8%.