News Column

Drop in Government Spending Drags Growth in Q4

March 28, 2013
us economic growth

The US economy grew at an annualized rate of 0.4 per cent in the fourth quarter of 2012, a revised government estimate showed Thursday.

The growth in real gross domestic product (GDP) reflected a bigger gain in personal spending, business investment and a decrease in imports, the Bureau of Economic Analysis said.

The data are the third revised estimate of GDP and are based on more complete source data than were available for the second estimate of 0.1 per cent issued last month.

The bureau's statistics also showed that a drop in government spending is still weighing on growth.

The figure for the fourth quarter follows a growth estimate of 3.1 per cent in the third quarter.

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Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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