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2.3% GDP growth held back by new-home shortage in 2017

The current-dollar GDP increased 5.0 percent to $19,738.9 billion. Overall, real GDP increased 2.3 percent in 2017 — 0.8 percentage points higher than 2016’s growth (1.5 percent), and the current-dollar GDP increased by 4.1 percent to $19,386.8 billion. But housing construction still did not fully get back to historically normal levels,” Yun said in an emailed statement. “Only 1.2 million housing units were constructed compared to the historical average of 1.5 million starts a year. This underproduction is the principal cause of the ongoing housing shortage, and why the economy did not fully get back up to 3 percent GDP growth possibility last year.” “Even in the private business sector, spending for equipment and software soared, but not for commercial building constructions,” he added. But Yun is optimistic about 2018, saying tax reform should get the U.S. economy back to 3 percent growth, or even 4 percent if residential construction gets back up to historic norms. This would in turn lead to a spectacular gain of near 4 percent GDP growth in 2018.” Other data from the U.S. Department of Commerce: Current-dollar personal income increased $178.9 billion in Q4. Disposable personal income increased 3.9 percent ($139.0 billion). Real disposable personal income increased 1.1 percent. Read the full report here.