March 01, 2007	Thursday	Safar 11, 1428

WASHINGTON, Feb 28: The government's estimate of US economic growth for the fourth quarter was revised down sharply to a 2.2 per cent pace from an earlier figure of 3.5 per cent, data showed on Wednesday.

The Commerce Department's downward revision, the biggest in a decade, showed a continuation of the sluggish pace of expansion from mid-2006 instead of the growth spurt suggested in the earlier figure.

The report on gross domestic product (GDP) highlighted concerns that the six-year-old US economic expansion is flagging, sparking increased talk about a slowdown or even a recession.

In the latest report, consumer spending and inventories were revised lower, and imports were revised up on new trade data.

The report maintained its earlier estimate of lower investment spending that is consistent with a broad manufacturing slow-down. Weaker motor vehicle output, for example, cut 1.24 points from growth.

Consumer spending was revised to show a 4.2 per cent increase instead of 4.4 per cent, with slower growth in spending on big-ticket durable goods such as cars and washing machines.

—AFP