US economic growth in Q4 revised down to 2.2 percent

WASHINGTON (AP) — The U.S. economy slowed more sharply in the final three months of the year than initial estimates, reflecting weaker business stockpiling and a bigger trade deficit.

The Commerce Department said today that the economy as measured by the gross domestic product grew at an annual rate of 2.2 percent in the October-December quarter, weaker than the 2.6 percent first estimated last month. It marked a major slowdown from the third quarter, which had been the strongest growth in 11 years.

Economists, however, remain optimistic that the deceleration was temporary. Many forecast that growth will rise above 3 percent in 2015, which would give the country the strongest economic growth in a decade. They say the job market has healed enough to generate strong consumer spending going forward.

For all of 2014, the economy expanded 2.4 percent, up slightly from 2.2 percent growth in 2013.

Consumer spending, which accounts for 70 percent of economic activity, was a bright spot in the fourth quarter.