The economy likely grew at a 3.2 percent annualized rate in the fourth quarter as U.S. consumer spending climbed the most in three years, according to the median forecast of 87 economists surveyed by Bloomberg.
The spending pickup allowed the economy to overcome cutbacks in government outlays caused by the partial federal shutdown in October.
Diminishing fiscal challenges and progress in the labor market probably will sustain consumer and corporate demand in 2014, helping explain why the Federal Reserve decided this week to keep paring stimulus.
Michael Carey, chief economist for North America at Credit Agricole CIB in New York, said, It was a quarter of pretty solid growth. Well see less of the headwinds from Washington. That will allow the economy to accelerate this year.
The projected gain in gross domestic product, the value of all goods and services produced, would follow a 4.1 percent advance, completing the strongest six months in almost two years, Household purchases, which account for almost 70 percent of the economy, may have increased 3.7 percent.
