Dive Brief:
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Gross domestic product in the U.S. grew 2.6% in Q4 with help from a rise in consumer spending that was the largest in three years, according to the U.S. Commerce Department.
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The gain was partly due to a rise in retail sales in February that also bested estimates.
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Consumer spending overall, which includes health care and other spending besides retail, was a key factor in the expansion.
Dive Insight:
The U.S. Commerce Department report had several indications of continued growth that, though still muted, is beating expectations. Consumer spending is a big reason why the number is so good, though that includes health care and government spending. Still, improvements in retail sales are part of that too. Retailers have been begging economists to take into account the chilling effect of continued storms and freezing weather, and this news may help foster that kind of patience.