U.S. economy grew a mild 2.1% in 4th quarter

The numbers: The economy expanded at a 2.1% pace at the end of 2019, but the U.S. might struggle to achieve even that modest rate of growth in the months ahead if a new strain of coronavirus isn’t contained.

The government also pegged gross domestic product at 2.1% in its preliminary estimate last month. GDP is the official scorecard for the economy.

The economy had been growing at a similar pace early in 2020, but signs are starting to suggest that the global outbreak of the COVID-19 illness could hurt the U.S. in the late stages of the first quarter. Tourism and travel-related businesses are already feeling the ill effects and tech giants such as Apple AAPL, -3.22%  have warned about potentially softer sales and profits.


What happened: Consumer spending, the main engine of the economy, was revised down a notch to show a so-so 1.7%% pace of growth in the fourth quarter. Outlays had risen 3.2% in the prior quarter.
The trade deficit was also sharply lower, giving the biggest boost to GDP. Exports rose a revised 2% instead of 1.4%. The decline in imports was little changed at 8.7%.

The economy had been growing at a similar pace early in 2020, but signs are starting to suggest that the global outbreak of the COVID-19 illness could hurt the U.S. in the late stages of the first quarter. Tourism and travel-related businesses are already feeling the ill effects and tech giants such as Apple AAPL, -3.22%  have warned about potentially softer sales and profits.


What happened: Consumer spending, the main engine of the economy, was revised down a notch to show a so-so 1.7%% pace of growth in the fourth quarter. Outlays had risen 3.2% in the prior quarter.
The trade deficit was also sharply lower, giving the biggest boost to GDP. Exports rose a revised 2% instead of 1.4%. The decline in imports was little changed at 8.7%.