The economy finished 2013 on a weaker footing than first thought, the government said on Friday, heightening concern that the United States is in the midst of another of the periodic slow patches that have dogged the recovery over the last five years.
The Commerce Department now estimates the economy grew at an annual pace of 2.4 percent in October, November and December, down from an initial estimate of 3.2 percent. The revised figure also represents a substantial slowing from the pace of growth in the third quarter, which totaled 4.1 percent. The department is scheduled to provide one more estimate of growth during the fourth quarter on March 27.
The downward revision comes after new data showing lackluster retail sales, inventory adjustments and a slightly less impressive trade balance late last year. Disappointing reports on job creation in December and January have also prompted fear of continued weakness into the spring of 2014.
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U.S. Growth at End of 2013 Is Revised Downward
The economy finished 2013 on a weaker footing than first thought, the government said on Friday, heightening concern that the United States is in the midst of another of the periodic slow patches that have dogged the recovery over the last five years.
The Commerce Department now estimates the economy grew at an annual pace of 2.4 percent in October, November and December, down from an initial estimate of 3.2 percent. The revised figure also represents a substantial slowing from the pace of growth in the third quarter, which totaled 4.1 percent. The department is scheduled to provide one more estimate of growth during the fourth quarter on March 27.
The downward revision comes after new data showing lackluster retail sales, inventory adjustments and a slightly less impressive trade balance late last year. Disappointing reports on job creation in December and January have also prompted fear of continued weakness into the spring of 2014.
Read it all.