OG-AA762_Econom_E_20140130084752

The Commerce Department reported that the Gross Domestic Product grew in the fourth quarter with the expansion fueled mainly by consumer spending, additional business investments picking up, and increases in exports.  

Gross domestic product, which is the broadest measure of goods and services produced across the economy, grew at a seasonally adjusted annual rate of 3.2% in the fourth quarter, the Commerce Department said Thursday.

Last year the U.S. economy grew around 1.3%, and hasn’t grown over 3% since before the recession began.

The main driver of the increase in the GDP was spending by consumers and businesses, plus stronger exports fueled the growth in the fourth quarter.  This growth offset the declines in governmental spending in the residential sector.   

The economy has been hanging tough especially with political turmoil emanating from the government shutdown back in October and ongoing political battles in Washington.

The Federal Reserve pointed to “growing underlying strength in the broader economy” and decided to continue to scale back its bond-buying program.  The Federal Reserve will now purchase $65 billion dollars a month beginning in February in order to keep long term interest rates low and to spur economic growth.

The economy faces strong headwinds in 2014, first with the ongoing political battle of raising the debt ceiling next month.  The biggest uncertainty for businesses will be the affect of “ObamaCare” and its related costs of implementation.   

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