U.S. economic growth tapped the brakes in the fourth quarter, but not as sharply as folks initially thought, with businesses less successful in reducing unwanted inventory, which could hurt output in the near future.
Figures released Friday morning by the U.S. Commerce Department showed that gross domestic product increased at a 1% annual rate instead of the previously reported 0.7% pace.
Economists expected that fourth-quarter GDP growth would be revised down to a 0.4% pace. The economy grew at a rate of 2% in the third quarter.
Businesses accumulated $81.7 billion U.S. worth of inventory rather than the $68.6 billion reported last month. That reflected an upward revision to inventory valuation adjustment.percent rate.
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