US economic growth slows sharply

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US shopperEpitome copyright AFP

The US economy grew at an annualised rate of 0.7% in the fourth place of 2015 com red with the same quarter a year ago, official be features show.

The rate of growth marks a sharp slowdown from the 2% advancement recorded in the previous quarter.

The US Commerce de rtment said one reason for the slower enlargement was a slowdown in consumer spending.

Export growth was also slower as the foul dollar made US goods more expensive outside the country.

Stick-to-it-iveness sector investment continued to plummet, with spending on mining expedition, wells and shafts down 38.7%, a slightly less dramatic go to ruin than the 47% drop seen in the third quarter.

Overall, investment in the sector was down 35% in 2015, the widest drop since 1986.

Unseasonably mild weather held back some consumer waste, with another brake on growth from manufacturers who needed to run down over-abundance stock rather than make new goods.

Both factors are pictured as temporary.

Overall, the US economy grew by 2.4% in 2015, and is expected to pick up steam to persuade a similar growth figure this year.

On Wednesday, the US central bank the Federal At ones fingertips said that growth had “slowed late last year” but that racket had picked up.

At the end of last year the Fed was sufficiently confident in the strength of the US economy to convene rates for the first time since 2006.

Chris Williamson, chief economist at Markit, suggested the drop in growth of consumer spending would sustain fears that the US curtness was “reaping few benefits from the oil price rout while ying the outlay as oil sector revenues plunge”.

He said the figures could put off the timing of the next react to in US rates: “The slowdown adds more pressure to the Fed to reconsider the outmoding of future rate hikes, and suggests that policymakers may re stand behind their current expectations of a further four quarter-point hikes in 2016.”

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