US fourth-quarter GDP growth revised down to 0.7 percent

US economic growth slowed more sharply than initially thought in the fourth quarter ​amid downward revisions to consumer spending and ‌business investment, government data showed on Friday.

Gross domestic product increased at a 0.7 percent annualized rate last quarter, revised ​down from the initially reported 1.4 percent pace, the ​Commerce Department's Bureau of Economic Analysis said ⁠in its second GDP estimate. Economists polled by ​Reuters had forecast GDP growth would be unrevised ​at 1.4 percent.

The economy grew at a 4.4 percent pace in the third quarter.

Last quarter's growth pace was lowered also ​because of downgrades to government spending, mostly ​on state and local government structures, and export growth. Last ‌year's ⁠record 43-day shutdown of the government also weighed on GDP growth.

Final sales to private domestic purchases, which excludes government, trade and inventories, grew at ​a 1.9 percent pace. ​This measure ⁠of domestic demand, closely watched by policymakers, was initially estimated to have ​increased at a 2.4 percent rate. Domestic ​demand grew ⁠at a 2.9 percent pace in the July-September quarter.

Though a pick up in growth is expected this ⁠quarter, ​the US-Israeli war with ​Iran, which has driven up oil prices, is clouding the economic ​outlook.

Reuters