Gdp, Quarterly Earnings | featured news

The American economy grew slower than predicted in the first quarter, as government spending cuts offset a pickup in consumer spending.

The third quarter’s gross domestic product grew at a 2.0 percent annual rate, the Commerce Department said in a revised estimate, down from the previously estimated 2.5 percent.

The economy grew at an annual rate of 2.5% in the three months ending Sept. 30, the government reported, easing fears that the nation would fall into a second recession but still too slow a pace to cut significantly into the high unemployment rate.

The U.S. economy grew more than previously calculated in the third quarter, led by stronger consumer spending and fueled by labor income gains that may stoke demand into 2011.