MercoPress. South Atlantic News Agency
US economy expanded at a 2.4% annual rate, down from the 3.2% estimated
Consumer spending accounted for a large chunk of the revision after retail sales in November and December came in weaker than assumed. The US government slashed its estimate for fourth-quarter growth as consumer spending and exports were less robust than initially thought, leaving the economy on a more sustainable path of modest expansion. GDP expanded at a 2.4% annual rate, the Commerce Department said on Friday.
That was down sharply from the 3.2% pace reported last month and the 4.1% logged in the third quarter.
It is not unusual for the government to make sharp revisions to GDP numbers, as it does not have complete data when it makes its initial estimates. In fact, the latest figures will be subject to revisions next month as more information is received.
The revision left GDP just above the economy's potential growth trend, which analysts put somewhere between a 2% and 2.3% pace.
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% rate, still the fastest pace since the first quarter of 2012. It had previously been reported to have grown at a 3.3% pace.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, contributed 1.73 percentage points to GDP growth, down from the previously reported 2.26 percentage points. As a result, final domestic demand was lowered two-tenths of a percentage point to a 1.2 percent rate.
The loss of momentum appears to have spilled over into in the first quarter of 2014, with an unusually cold winter weighing on retail sales, home building and sales, hiring and industrial production.
Top Comments
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Read all commentsA full THIRD out in the “estimate”.
Mar 02nd, 2014 - 10:43 am 0This is not an estimate, it is a guess!
And they are probably going to alter it again next month when they have more information.
Don't bother.
More propaganda crap from Oboso the economy in USAMEX is really bad and they are keeping it by pumping money into it. For 2014 the external debt will surpass 17 trillions dollars. A figure that none can in USAMEX at least before 30 years if they star to perform cuts from yesterday.
Mar 03rd, 2014 - 01:09 pm 0But not, they keep living in fantasyland borrowing and borrowing... A debt bomb that will explode may be in the next administration. Who knows?
@2 Sorry, Dany girl. How do you keep pumping money “in” if you don't have any money? Is it possible that the “debt bomb” will explode under your shredded arse? Anybody want to see argieland turned into 5 metre square “blow-by” or “fart”.
Mar 03rd, 2014 - 05:32 pm 0Oh look, Dany (with onions and beans) and a debt bomb, losing track of how it will be killed. Anybody got a clue what percentage, in excess of 99%, of Russia should be destroyed.
It works like this. Be good or else. At the end of the day, cut its head off. And piss on it.
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