WASHINGTON (AP) — The U.S. economy grew at an annual rate of more than two percent in the October-December quarter -- significantly slower than first thought, and reflecting slower consumer spending than initially estimated.
The severe winter weather is expected to slow growth further in the current fiscal quarter, but as the snow melts economists believe growth will rebound.
The Commerce Department said the numbers primarily reflect a downgrade in consumer spending, which is now estimated to have expanded at 2.6 percent rate -- which is still the best showing in nearly two years. But it is below the previous 3.3 percent that analysts forecast.
For all of 2013, the economy only grew about two percent percent, but analysts expect that will rebound in 2014, possibly reaching as high as three percent.
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