US Economic Growth Rate Revised

US Economic Growth Rate RevisedContrary to what was originally anticipated, the US economy has shown a decline in its growth rate from October to December, according to the US Commerce Department.

US gross domestic product (GDP) grew at an annualised rate of 2.4% in the fourth quarter of 2013, down from an initial estimate of 3.2%.

The revision downward is due to weaker than expected consumer spending.

In addition, severe winter weather in the US is expected to slow growth further in the current quarter.

The Commerce Department initially predicted consumer spending had expanded by 3.3%, but spending is now estimated to have grown at a 2.6% annual rate.

Consumer spending accounts for approximately 70% of US economic activity.

The vagaries of the winter weather has affected the sales of vehicles, among other consumer purchases.

Market experts have posited the view that despite the revised GDP estimate, US growth should be regarded as strong.

For all of 2013, the economy grew at 1.9%.

Yvad Billings, Readers Bureau, Fellow

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