Fourth Quarter GDP Up Less Than First Estimate

Washington, DC, Feb. 25, 2011 -- Gross Domestic Product in the fourth quarter grew less than initially estimated, according to the Commerce Department.

GDP grew at annualized rate of 2.8 percent, down from ans initial 3.2 percent estimate.

Economists had expected GDP growth, which measures total goods and services output within U.S. borders, to be revised up to a 3.3 percent pace.

The economy expanded at a 2.6 percent rate in the third quarter. For the whole of 2010, the economy grew 2.8 percent instead of 2.9 percent.

The revision reflected a steeper contraction in government spending than previously estimated.

In addition, consumer spending -- which accounts for more than two-thirds of economic activity -- grew at a 4.1 percent rate in the final three months of 2010 instead of 4.4 percent.