US economy grew 3.2% in fourth quarter

The US economy beat analysts expectations in the fourth quarter, growing at an annual rate of 3.2 per cent.

The US economy grew at an annual rate of 3.2 per cent in the 2013 fourth quarter, slightly stronger than expected despite the partial government shutdown.

Most analysts had pencilled in 3.0 per cent gross domestic product growth in the October-December quarter, following more robust growth of 4.1 per cent in the third quarter.

The Commerce Department said on Thursday that the fourth-quarter slowdown mainly reflected lower inventory investment, as well as a larger decrease in government spending, a downturn in housing investment and weaker business investment.

Offsetting those restraints were pick-ups in net exports and consumer spending.

The full effects of the October 1-16 federal government shutdown, which furloughed thousands of workers, "could not be quantified", the Commerce Department said.

However, it said, it estimated the effects of the reduction in hours worked by federal employees as trimming 0.3 per cent point off GDP growth.


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Source: AAP


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