The U.S. economy grew at a 2.4 percent annual rate in fourth-quarter 2013, the Bureau of Economic Analysis said Friday, as it significantly cut its estimate of how much gross domestic product grew during the last three months of the year.
When the bureau issued his initial estimate for growth in the quarter, it said GDP had expanded at a 3.2 percent annual rate.
According to Bloomberg News, “smaller gains in consumer spending, inventories and exports weighed on an economy already slowed by the 16-day partial shutdown of federal agencies in October and weaker government spending.”
Reuters says “consumer spending and exports were less robust than initially thought, leaving the economy on a more sustainable path of modest expansion. … Consumer spending accounted for a large chunk of the revision after retail sales in November and December came in weaker than assumed. Consumer spending was cut to a 2.6 percent rate, still the fastest pace since the first quarter of 2012. It had previously been reported to have grown at a 3.3 percent pace.”
With the revision, the bureau now says that GDP grew 2.5 percent from the end of 2012 through the end of 2013. That’s up from the 2 percent growth each of the previous two years.