U.S. economic growth slowed; corporate profits fell in 4Q

A strong dollar contributed to slower economic growth and a drop in after-tax corporate profits in the fourth quarter.

The U.S. Department of Commerce reported that gross domestic product expanded at a 2.2 percent annual rate for the three months ended Dec. 31, down from 5 percent in the third quarter, according to Reuters. Consumer spending helped balance out a drop in business inventory and equipment investments.

After-tax profits declined $57.1 billion, after rising $52.4 billion in the previous quarter. The drop is the biggest since the first quarter of 2011. Corporate profits outside the U.S. also fell $36.1 billion after increasing $16.5 billion in the third quarter.

The dollar gained 7.8 percent between June and December against currencies of the United States' primary trading partners.

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