Historically the U.S. is below the norm economically after over six years of recovery, and the economy has expanded at a 3.3% rate. Although consumers are spending money rapidly, many businesses have pushed back investments due to cheap oil and lower profits. Still the Federal Reserve believes the economy is strong enough to warrant the first increase.
Most other figures in the GDP report were little changed. The increase in consumer spending stayed at 3%, for example, while business investment in structures such as office buildings was nudged up to 2.6% from 2.4%.
The government’s most recent snapshot of how the U.S. performed in the third quarter fall shows little change in the trajectory of the economy.