U.S. economy cools in fourth quarter; consumer spending shines

Americans have been spending at their fastest pace since 2006 but businesses have slammed on the spending brakes, causing economic growth to drop sharply in the fourth quarter, Reuters reports.
 
Gross domestic product expanded at 2.6 percent, dropping from 5 percent in the third quarter, according to the Commerce Department on Friday. Economists had expected 3 percent growth in the GDP in the fourth quarter.
 
The slowdown isn't expected to last long, however. Lower gasoline prices and a strengthening labor market are predicted to keep consumer spending humming along in the first quarter, the report states.

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