Economic growth slows in Q4 as firms reduce inventory glut

Washington

US economic growth braked sharply in the fourth quarter as businesses stepped up efforts to reduce an inventory glut, and a strong US dollar and tepid global demand weighed on exports.

Gross domestic product (GDP) increased at a 0.7 per cent annual rate, the Commerce Department said on Friday in a report that showed a further cutback in investment by energy firms grappling with lower oil prices. Growth in consumer spending also slowed as unseasonably mild weather cut into spending on utilities.