US economy grew at a solid pace in the fourth quarter

The US gross domestic product, the broadest measure of the nation's economy, grew at an annualized rate of 2.6% in the fourth quarter.

Although that's slower than the previous three months, it's faster than the same period a year earlier.

Some forecasts had been much lower. The Federal Reserve of Atlanta had forecast growth of only 1.8%. Economists surveyed by Thomson Reuters had forecast growth as slow as 1.4%.

Some economists worry that slowing economies elsewhere in the world, particularly in China and Europe, will drag down American economic growth. The US economy depends on trade with those countries. The rising trade tensions between the United States and some of its trading partners had several major US companies reporting slower overseas sales. New orders for many factories had slowed at the end of last year.

But with unemployment near a 50-year low, consumer spending was strong. That helped to support overall growth.

The solid growth in the fourth quarter resulted in the economy posting 2.9% growth for the full year. That's the best year of growth since 2015.

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