Economy expanded at 3.2 percent pace during the fourth quarter of 2013

The U.S. economy expanded during the fourth quarter of 2013 as gross domestic product (GDP) increased 3.2 percent, which is similar to what economists expected, according to The New York Times.

The fourth-quarter figure is down compared with the third quarter, when GDP increased 4.1 percent. The economy grew as there were healthy gains in consumer spending, an improved trade balance and inventory gains.

The federal government cut spending by 12.6 percent, and state and local governments increased spending by 0.5 percent.

During 2013, the economy expanded at an annual rate of 1.9 percent, which is down from 2.8 percent in 2012 and partly a result of significant government spending cuts. Economists estimate the economy will expand by 2.5 percent during the January, February and March period.

Date : 1/30/2014