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Fourth-quarter GDP increases 2.6%, better than expected

Worries that a global slowdown would infect the U.S intensified during the period, while investors worried that the Federal Reserve would continue to raise interest rates even as financial conditions tightened.

Even with the weaker fourth quarter, economic growth was solid for the year, after GDP gains of 2.2 percent and 4.2 percent in the first and second quarters respectively. The report also comes on the heels of mixed signs in the economy.

Employment remains strong, with payroll gains continuing in excess of 200,000 a month and wages rising at the fastest clip of the recovery. However, poor retail sales have raised worries about consumers who drive nearly 70 percent of growth in the U.S.

The report also comes amid the White House’s wrangling with China over trade. Officials are hoping to get the broad aspects of an agreement together at ongoing meetings, with higher-level negotiations ahead. The two sides face a March 1 deadline after which tariffs between the two could intensify.

A rise in imports helped boost GDP for the quarter.

The government shutdown delayed the release of the GDP estimate, so Thursday’s data replaces both the first and second estimate the Bureau of Economic Analysis releases.

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