Economic growth clocked in at a 2.2 percent annual rate in the fourth quarter of 2014, according to the third and final revision of gross domestic product data released by the Bureau of Economic Analysis Friday.
Growth slowed significantly from the third quarter, when it was 5 percent. It was also slower than the initially reported 2.6 percent annual rate, adjusted for seasonal variations. Wall Street investors had expected the revision released Friday to show a 0.2 increase in the growth rate.
The slowdown from the third quarter to the fourth reflected in increase in imports, which count against gross domestic product, as the U.S. dollar rose in comparison to other currencies. Government spending and business investment also slowed.
There was some hint of good news in Friday’s re-release, however. Exports and consumer spending were higher than initially thought, offset by a markdown in inventory spending. Business spending on inventory generally isn’t correlated with future growth.
Economists have modest expectations for the first quarter of 2016. Unusually cold weather has slowed commerce in some states, and recent reports, such as a big drop in durable goods orders, have hinted at slower growth overall.
The Bureau of Economic Analysis will report on first-quarter gross domestic product on April 29.
