WASHINGTON: The US economy lost momentum in the final three months of 2016, closing out a year in which growth was the weakest in five years.
The Commerce Department said gross domestic product grew at an annual rate of just 1.9% in the October-December period, a slowdown from 3.5% in the third quarter. GDP, the broadest measure of economic health, was held back by a jump in the trade deficit.
For the full year, the economy grew 1.6%. It was the worst showing since 2011 and down from 2.6% growth in 2015.
President Donald Trump has set a goal of doubling the growth rate through an ambitious stimulus programme featuring tax cuts, deregulation and higher infrastructure spending.
However, in a separate report, the Commerce Department said US businesses ramped up their investment in industrial machinery, semiconductors and other big-ticket items in December, lifting demand for factory goods.
Its measure that tracks business spending plans climbed 0.8% in December, after jumping 1.5% in the previous month.
Orders for all durable goods slipped 0.4%, mostly because of a sharp fall in demand for military aircraft, a volatile category. Excluding transport-related goods, orders rose 0.5%, the sixth straight increase.
The report adds to recent evidence that manufacturers are climbing out of a roughly two-year rut. A strong US dollar and falling oil and gas prices had hurt demand for factory products, as drillers ordered less steel pipe and other equipment. Yet demand has risen since oil prices have stabilised above $50 a barrel.