GDP takeaways From BB

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  • 4Q growth at 2.6% annualized pace, cooling less than expected, as business spending accelerated, but down from 3.4% in 3Q.
  • Still, GDP grew 3.1% from a year earlier, the most since 2015 and a chance for the White House to claim a win
  • Consumer spending decelerated to 2.8%, missing the 3% forecast yet still solid
  • Non-residential investment held up with a 6.2% gain, even as investing in structures fell 4.2%, the most in a year
  • Equipment investment picked up to 6.7% from 3.4%, while intellectual property jumped 13.1% following 5.6%
  • Reduced services during the government shutdown subtracted about 0.1 percentage point from 4Q growth, the Commerce Department said in a technical note
  • Net exports subtracted 0.22 percentage point from growth
  • Inflation doesn’t add much urgency for the Fed, with the PCE gauge rising 1.5% and the core measure up 1.7%
  • Defense spending grew 6.9%, the most in nine years
  • Housing was a drag on growth for a fourth-straight quarter

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