Fourth-Quarter GDP Slows to 1.1%; Rate Was 3.5% for Year
he U.S. economy slowed its growth in the fourth quarter to a 1.1% annual rate, the Commerce Department reported Friday.
The gross domestic product growth rate followed a 4.1% fourth-quarter annual rate, and the slowed growth ended 10 consecutive quarters of growth exceeding 3%. That had been the longest such string since the 13 quarters that ended in the first quarter of 1986.
Economists had expected a 2.8% rate for the quarter, Bloomberg reported.
For all of 2005, the economy grew at 3.5%, following 4.2% growth in 2004.
The Wall Street Journal reported in early January that the 2006 GDP will grow at a 3.5% in the first half and 3.1% in the second half of the year. (Click here for previous coverage.)
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