The US economy grew faster than initially reported in the fourth quarter of past year, at a pace of 2.1%, according to the Commerce Department's third estimate.
This GDP print is the final reading on fourth-quarter economic growth until annual revisions for all of 2016 are released in July.
However, the pace of business fixed investment - perhaps the most important component of GDP - was revised down to show a rise of 2.9%, which was lower than the prior estimate of 3.2%.
Data such as trade, consumer and construction spending suggest the economy struggled to regain momentum early in the first quarter.
The small change to the fourth quarter did not alter growth for the entire year, which came in at an anemic 1.6 per cent. The economy grew 1.6 percent for all of 2016, its worst performance since 2011, after expanding 2.6 percent in 2015.Prices of USA government debt fell after the data.
The deceleration in real GDP in the fourth quarter reflected downturns in exports and in federal government spending, an acceleration in imports, and a deceleration in nonresidential fixed investment that were partly offset by accelerations in private inventory investment and in PCE, and upturns in residential fixed investment and in state and local government spending, says the report. The US economy grew by 2.6 per cent in 2015.
Growth in consumer spending, which accounts for more than two-thirds of US economic activity, was revised up to a 3.5 per cent rate in the fourth quarter.
The price index for gross domestic purchases increased 2.0 percent in the fourth quarter, compared with an increase of 1.5 percent in the third quarter. The general picture of economic growth remains the same.
Treasury Secretary Steven Mnuchin said last week that even if the initial goal of getting the tax measure approved by August slips, he still believes the plan can win congressional approval by this fall. And the hope after the election is to get GDP growth from a baseline of 2% or less to 3% or higher. Top forecasters with the National Association for Business Economists on Monday projected GDP growth this year of 2.3 percent, rising only slightly to 2.5 percent in 2018.
The government also said that corporate profits after tax with inventory valuation and capital consumption adjustments increased at an annual rate of 2.3 per cent in the fourth quarter after rising at a 6.7 per cent pace in the previous three months. It will issue its first look at first quarter GDP on April 28.