The U.S. economy grew at an annual rate of just 0.6 percent in the final quarter of 2007, down sharply from the brisk 4.9 percent pace in the previous quarter, the Commerce Department reported Wednesday.
The newly released reading, which was unchanged from an initial estimate a month ago, underscored how much momentum the economy has lost, analysts say.
The economy grew 2.2 percent for all of last year, the worst showing since 2002.
Consumer spending, which accounts for two thirds of overall economic activity, rose at an annual rate of 2.3 percent in the October-to-December period, down from a 2.8 percent growth rate in the third quarter but better than a 1.9 percent growth rate previously estimated.
For all of last year, consumers boosted their spending by 2.9 percent, the smallest increase since 2003.
Spending on housing projects plunged 25.2 percent in the fourth quarter, steeper than the 20.5 percent drop in the third quarter, the most in 26 years.
"Core" prices, which exclude volatile energy and food and are an inflation gauge closely watched by the Federal Reserve, rose at a rate of 2.5 percent in the fourth quarter, revised down from a previous estimate of a 2.7 percent pace but up from the prior quarter's 2 percent growth rate.
GDP measures the value of all goods and services produced within the United States. Many economists believe growth in the current quarter, which ends Monday, will be even weaker than the 0.6 percent increase due to the continuing housing and financial crises.
Source: Xinhua
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