Official figures show that the US economy grew at a slower rate than initially estimated in the fourth quarter of 2010.
A report said government investment contracted more sharply and consumer spending was less robust than previously estimated.
Gross domestic product growth was down to an annualised rate of 2.8%, the Commerce Department said in its second estimate, from an initial 3.2%.
Economists had expected GDP growth to be revised up slightly. The US economy expanded at a 2.6% rate in the third quarter. For the whole of 2010, the economy grew by 2.8% instead of 2.9%.
The report confirmed the Federal Reserve's concerns that the pace of growth remained too slow to significantly lower a 9% unemployment rate. It makes it very likely that the US central bank will complete its $600 billion government bond-buying programme to further stimulate demand by lowering interest rates.
The government revised fourth-quarter growth to reflect a steeper contraction in government spending than previously estimated. In addition, consumer spending - which accounts for more than two-thirds of US economic activity - grew at a 4.1% rate in the final three months of 2010 instead of 4.4%.
This was still the the fastest consumer spending growth since the first three months of 2006 and was an acceleration from the third quarter's 2.4% rate. But there are concerns that surging crude oil prices could hurt consumer spending and slow the economy's recovery.
The government revised business investment up, though spending on equipment and software was slower than initially thought.
