US GDP slows a tad more than expected in the fourth quarter

Economic activity in the US slowed down a tad more quickly than expected during the third quarter, but continued to point to a robust end of the year, according to economists.

According to the Department of Commerce, America's gross domestic product expanded at a quarterly annualised pace of 2.5% over the three months to December, down from a 3.2% clip over the prior three months.

Economists had penciled in a rate of expansion of 2.5%.

That compared to a preliminary estimate of 2.6% growth.

Within the same report, Commerce marked down its estimates for both gross private investment and public sector spending by a tenth of a percentage point, to 3.5% and 2.9%, respectively.

On the other hand, the government's preliminary estimate of 3.8% growth in household consumption was unchanged, as was its -0.7% estimate of how much net exports detracted from the quarterly rate of GDP growth.

Final domestic sales grew at a 4.3% clip, confirming the "solid momentum in activity towards the end of 2017", according to Barclays Research.

"In sum, the contours of the second estimate of Q4 GDP remain broadly unchanged. The report continues to show evidence of solid domestic activity, driven by household and business spending. The acceleration of growth outside the US and the synchronized nature of global growth are leading to stronger business investment, faster export growth, and imports of capital goods."