The U.S. economy grew 2.3 percent in 2019, a solid pace that was boosted by strong consumer and government spending but fell short of President Trump’s promise to deliver at least 3 percent growth.
Last year’s growth was the weakest since Trump took office, according to Commerce Department datareleased Thursday, as Trump’s escalating trade war with China triggered a major pullback in business spending and investment. From April through December, business investment contracted as corporate leaders preferred to sit on cash or return it to investors instead of using it to build factories or buy equipment.
The falloff in growth — from 2.9 percent in 2018 to a more typical pace in 2019 — suggests the stimulus from the tax cuts is wearing off and the trade war is canceling out many of its benefits. The tax cuts came with a hefty price tag that many Republicans hoped would be offset by stronger growth for years.