Economic Watch: GDP Advances at Annual Rate of 3.2% for Quarter
The U.S. economy expanded at a healthy pace in the final quarter of last year amid a big jump in consumer spending, according to new Commerce Department figures.
The U.S. economy expanded at a healthy pace in the final quarter of last year amid a big jump in consumer spending.
New U.S. Commerce Department figures show this measure of the total output of the nation’s goods and services increased at an annual rate of 3.2%, following a 4.1% gain in the third quarter of last year, marking the best back-to-back performance since the end of 2011 and the start of 2012.
Consumer spending in the fourth quarter of 2012 increased 3.3%, its best number since 2010. Exports were up 11.4%, double the gain in the earlier quarter.
Overall GDP growth would have been higher had it not been for a 12.6% decline in federal government spending, subtracting an estimated full percentage point from the overall fourth quarter annual rate.
For all of 2013 the U.S. economy expanded at an annual rate of 1.9%, compared to an annual rate of 2.8% in 2012. However, when last year’s performance is divided between the first and second halves of the year, the rate of expansion was 3.7% in the second six months versus 1.8% in the first half, marking the strongest second-half performance since 2003.
This new report is the first of three estimates from the Commerce Department regarding the fourth quarter GDP, with the next one set for release a month later.
Lindsey Piegza, chief economist with the investment firm Sterne Agee, characterized it as “ relatively strong end of the year growth report.
“Despite slow job creation and stagnant income growth, consumers continued to spend through the end of the year thanks to equity market highs, certainty in Washington and early energy price reprieve," Piegza said. "But while consumers may have been feeling more optimistic, filled with holiday spirit, businesses were much less cheerful and pulled back at year end."
She said despite what appeared to be a loosening of corporate purse strings in the third quarter, investment slowed noticeably in the final quarter of the year, suggesting an increasingly cautious outlook from many small businesses and investors as we move further into the new year.
More Fleet Management

How Innovative Trucking Leaders Turn Change Into an Advantage
As the pace of change accelerates in trucking, the fleets that adapt best have more than the latest technology. They have cultures that embrace improvement.
Read More →
Freight Broker Bonds Just Got Harder to Get. Here's What That Means for Your Fleet.
When it gets harder for a freight broker to prove they are financially sound, the ones who cannot clear that bar get pushed out of the market. And those are exactly the brokers who used to leave motor carriers holding the bag.
Read More →
Long-Awaited Canadian Border Bridge to Open in Detroit
For trucking, the bridge opening should offer immediate improvements in efficiency and reliability, with new customs facilities, expanded inspection capacity, and direct freeway-to-freeway connections.
Read More →
Aurora Rolls Out Next Generation of Driverless Trucks for Commercial Freight
Aurora's latest autonomous trucks it's rolling out with International feature lower-cost hardware designed for a million miles as the company expands commercial driverless freight operations across the U.S. Sun Belt.
Read More →
Freight Tonnage Down, Rates up, as Lower Capacity Powers Trucking Recovery
The recovery from the freight recession continues to be driven by reduction in capacity rather than by increased demand.
Read More →
Think Your Trucking Fleet Isn't Using Much AI? Think Again
Shadow AI — the use of unauthorized artificial intelligence tools at work — is becoming increasingly common, putting sensitive company data at risk. Learn how trucking fleets can protect sensitive data while embracing AI.
Read More →
ArcBest Consolidates Brands, Cuts Workforce
The company will bring three business units under the ArcBest brand, eliminate about 2% of positions, and expects the changes to generate $40 million in annual savings.
Read More →
Trucking Fleets Faced Record Operating Costs During Third Year of Freight Recession
ATRI's annual operational cost report shows carriers trimmed fleets, delayed equipment purchases, and ran older trucks as expenses continued to outpace freight rates.
Read More →
Michelin Adds AI Assistant to MyConnectedFleet Platform
Michelin’s new generative AI tool delivers instant fleet insights, helping managers analyze fuel use, tire maintenance, vehicle status, and operational performance without manually creating reports.
Read More →
LytxOne Platform Now Features AI, Compliance, and Asset Tracking Tools
New enhancements add AI-powered insights, asset tracking, compliance automation, and configurable privacy controls to Lytx's all-in-one fleet management platform.
Read More →
