U.S. economic growth slowed in the final three months of last year, dragged down by the six-week shutdown of the federal government and a pullback in consumer spending. Consumer spending only rose 2.4% in the fourth quarter, a decrease compared to the third quarter’s 3.5% gain.

Diane Swonk, chief economist at KPMG, said the report reflected a “one-legged” economy boosted mostly by artificial intelligence. A separate report Friday showed that inflation, according to the Fed’s preferred measure, accelerated in December, as the cost of goods such as furniture, clothes, and groceries increased dramatically.

Many households, however, have had to take on more debt to fuel their spending. The saving rate dropped in the fourth quarter to the second-lowest figure since August 2008, when the economy was mired in the Great Recession.

https://apnews.com/article/gdp-economy-consumer-shutdown-immigration-0e5caca783b93eaf2231496e3e0f54f3