White House touts ‘strong underlying trend’ in slowing economy

The White House found promising trends in new federal report Friday that showed the U.S. economy had slowed in the fourth quarter more than initially estimated.

The Commerce Department report revised gross domestic product for the fourth quarter to 2.2 percent from an original estimate of 2.6 percent, blaming slower stock accumulation by business and a growing trade deficit but characterizing the economy as fundamentally strong.

The economy grew at a 5 percent rate in the third quarter.

“Today’s estimate of fourth-quarter economic growth affirms the strong underlying trend of the largest and most persistent components of output, while reflecting downward revisions to more volatile sectors,” said Jason Furman, chairman of the president’s Council of Economic Advisers.

Mr. Furman pointed to the fast pace of growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity and accelerated at its quickest pace since the first quarter of 2006.

“Overall, today’s report is consistent with a wide range of indicators showing further labor market strengthening, increasing domestic energy security, continued low health cost growth, and resiliency in the face of slower growth in the global economy,” he said. “The president’s approach to middle-class economics would build on this growth while helping to ensure that our recovery is widely shared with all American families.”