Economic growth in the United States at the end of last year was much weaker than earlier estimated. <br /><br />The US government’s latest calculations show consumer spending and exports were less robust than initially thought.<br /><br />GDP expanded at a 2.4 percent annual rate between October and December 2013, That was down sharply from the 3.2 percent pace initially estimated and reported last month.<br /><br />Growth reached 4.1 percent in the third quarter of 2013.<br /><br />Much of the downward revision was linked to consumer spending, which accounts for more than two-thirds of US economic activity.<br /><br />Retail sales in November and December were weaker than had been assumed earlier.<br /><br />The loss of momentum appears to have spilled over into the first quarter of 2014 – in terms of retail sales, home building and sales, hiring and industrial production.<br /><br />The Federal Reserve, which has been reducing its stimulus measures, views the recent soft patch as temporary and linked to cold weather.<br /><br />Fed Chair Janet Yellen has said it would take a “significant change” to the economy’s prospects for the central bank to suspend its policy of winding down bond buying to pump money into the US economy.
