U.S. economy grew 2.5 percent, matching expectations
U.S. economic growth was revised down slightly to a still-solid 2.5 percent rate in the final three months of last year.
The Commerce Department says the fourth-quarter advance in the gross domestic product, the economy's total output of goods and services, followed even faster increases of 3.1 percent in the second quarter and 3.2 percent in the third quarter.
Wage income was revised significantly. "Wage income is now +4.6% [year-over-year] in Q4, instead of 4.3%," Jim O'Sullivan, chief U.S. economist at High Frequency Economics, wrote in a note.
Consumer spending raced ahead at the fastest pace since the spring of 2016, but the strong gain was slightly lower than previously reported. That pulled down the overall GDP figure from an initial estimate of 2.6 percent.
For the year, GDP rose 2.3 percent, a significant pickup from 1.5 percent in 2016.
