US economic slowdown not as sharp as feared

Rise in consumer spending helps boost fourth-quarter GDP growth to 1.4% and eases lingering fears of imminent recession

US economic growth slowed in the fourth quarter, but not as sharply as previously estimated, with fairly strong consumer spending offsetting the drag from businesses trying to cut stock levels.

Gross domestic product increased at a 1.4% annual rate instead of the previously reported 1% pace, the Commerce Department said on Friday in its third GDP estimate.

Related: US jobs report: economy adds 242,000 jobs but wages drop slightly