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US economy slows in the fourth quarter; spending robust

By Lucia Mutikani

WASHINGTON (Reuters) -U.S. economic growth slowed in the fourth quarter, but robust domestic demand will probably keep the Federal Reserve on a slow interest rate cut path this year.

Gross domestic product increased at a 2.3% annualized rate last quarter after accelerating at a 3.1% pace in the July-September quarter, the Commerce Department's Bureau of Economic Analysis said in its advance GDP estimate on Thursday.

Economists polled by Reuters had forecast GDP rising at a 2.6% pace. Estimates ranged from a 1.7% pace to a 3.2% rate.

The survey was concluded before data on Wednesday showed the goods trade deficit swelled to a record high in December, which prompted the Atlanta Fed to slash its GDP forecast to a 2.