The U.S. economy grew at a 2.3 percent rate in 2019, boosted by strong consumer and government spending, according to The Washington Post.
However, growth in 2019 was the weakest since President Trump took office and fell short of his promise to deliver at least 3% growth. Trump’s trade war with China reportedly triggered a significant pullback in business spending and investing.
Growth was 2.1% during the final three months of 2019, which was better than economists expected and signals the economy is not falling into a recession. Growth was 2.1% during the third quarter and 2% during the second quarter.
The U.S. economy is driven mainly by consumer spending, and U.S. households continued to buy goods and experiences at a steady pace. Data show consumer confidence is high because Americans believe it is easy to get a job and their incomes are likely to stay the same or improve during the coming months.
Government spending also has increased, boosting economic growth. The deficit neared $1 trillion in 2019, an unprecedented level for when the economy is doing well and there is not a major war effort underway.
Most economists say the trade war and weak growth abroad significantly slowed the economy in 2019. Additionally, the ongoing fallout at Boeing after the two 737 Max plane crashes reportedly slowed growth because Boeing typically is the largest U.S. exporter and experienced a drop in orders after the tragedies.
