Economic Buzz: US economic growth slows in fourth quarter after revisions

US economic growth in the fourth quarter was weaker than earlier estimates, mainly due to lower business investment and slower inventory buildup, according to new government data.

The economy grew at an annual rate of 0.5%, down from the earlier estimate of 0.7% and much lower than the initial 1.4% estimate. Consumer spending, which makes up the largest part of the economy, was also slightly revised down to 1.9%.

A broader measure of economic activity showed growth at 1.5%, compared to a much stronger 4.0% in the previous quarter. The slowdown was largely linked to the impact of last year?s government shutdown, which dragged down overall economic momentum.

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