Business

US economy expands at slower rate than expected

WASHINGTON (AP) — The US economy grew at a 2.4 percent annual rate in the October-December quarter, significantly slower than first thought, reflecting slower consumer spending than initially estimated.

The severe winter weather is expected to slow growth further in the current quarter, but as the snows melt, economists believe growth will rebound.

Advertisement

The Commerce Department says the downward revision from an initial 3.2 percent estimate for the fourth quarter primarily reflected a downgrade in consumer spending, which is now estimated to have expanded at 2.6 percent rate, still the best showing in nearly two years. But it is below the previous 3.3 percent estimate.

For all of 2013, the economy grew at a lackluster 1.9 percent, but analysts expect growth will rebound in 2014, possibly as high as 3 percent.

Loading comments...
Real journalists. Real journalism. Subscribe to The Boston Globe today.
We hope you've enjoyed your free articles.
Continue reading by subscribing to Globe.com for just 99¢.
 Already a member? Log in Home
Subscriber Log In

We hope you've enjoyed your 5 free articles'

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com