US economy grows 2.4pc in Q4

WASHINGTON, Mar 1 (AFP): The US economy grew more slowly late last year than previously thought, but there was enough vigor that the Federal Reserve will likely continue reducing its stimulus program, analysts said.
The Commerce Department on Friday cut its estimate of gross domestic product growth in the final quarter to an annual rate of 2.4 per cent, from an initial reading of 3.2 per cent.
Analysts had expected a somewhat smaller GDP revision to a 2.6 per cent pace in the final quarter, which began with the negative effects of the government shutdown in October and ended with disappointing holiday retail sales in December amid bad weather.
Most of the downward fourth-quarter revision of 0.8 percentage point came from smaller than first estimated growth in consumer spending, the main engine of US economic activity.