Speed Reads

Economics

GDP revised downward

The U.S. economy expanded at a slower pace than initially estimated late last year.

GDP grew at a seasonally adjusted annual rate of 2.4 percent in the fourth quarter of the year, the Commerce Department said Friday, down from an initial measurement of 3.2 percent.

While the U.S. economy surged in the third quarter of the year, climbing to 4.1 percent and raising hopes for a stronger expansion, faster job creation and better wage growth in 2014, this loss of momentum dampens the mood.

Why? Some businesses have blamed December's bad weather for a downturn in business.

But the biggest culprit appears to be cuts in government spending:

[Bloomberg]

Without that decrease in government spending, growth would have been more substantial.