US economic growth slowed to an annual rate of 1.4% in the fourth quarter of 2000 from 2.2% in the third, the Commerce Department reported today.
Wall Street analysts had expected that gross domestic product would expand at a rate of 2% from October to December. For the year, GDP rose 5% compared with 4.2% in 1999.
The fourth quarter GDP price index, a measure of inflation, was up 2.1% after 1.6% in the third.
US markets and financial circles had been bracing for a weak fourth quarter growth figure following remarks last week by Federal Reserve Chairman Alan Greenspan, who told Congress that momentum had undergone a dramatic slowdown.
The Federal Reserve is expected to announce a cut in short-term interest rates later tonight after a two-day meeting.
