US growth wasn’t quite as good as we thought in the fourth quarter. A just-released revision to US GDP data shows that the world’s largest economy expanded at a 2.4% annualized rate in the fourth quarter. An earlier estimate clocked US growth at 3.2%.
Household purchases grew at a 2.6% clip, down from the 3.3% rate that was previously reported. Tighter government budgets also continue to weigh on the US economy, with overall government spending down by 5.6%—deeper than the 4.9% decline previously reported. Overall, government spending cuts subtracted roughly 1% from overall GDP growth.