WASHINGTON, March 30: The US economy expanded at a 1.7 per cent pace in the fourth quarter of 2005, the government said on Thursday, in a slight upward revision of its previous estimate of 1.6 per cent growth.

The Commerce Department’s third and final estimate of gross domestic product was in line with expectations.

The report confirmed a sharp deceleration from the 4.1 per cent growth pace in the third quarter, but analysts said that the slowdown was linked to Hurricane Katrina and other one-time factors and that growth has picked up in 2006.

The figures from the Commerce Department close the books on 2005, showing growth for the year of 3.5 per cent, compared with 4.2 per cent in 2004 and 2.7 per cent in 2003.

The report showed corporate profits increased a record $185.8 billion at an annualized rate in the fourth quarter and were growing at the fastest pace in three years.—AFP