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GDP Growth Slows to 2.2% in Fourth Quarter

Wall Street Journal (02/27/15) Jeffrey Sparshott; Kate Davidson

The economy cooled in the fourth quarter of 2014, growing at an annual rate of 2.2%, down from an initial estimate of 2.6%, according to the U.S. Department of Commerce. Economists polled by the Wall Street Journal had forecast a growth rate of 2.0%. In contrast, the economy grew at a 5.0% pace in the third quarter and a 4.6% pace in the second quarter. For the year as a whole, gross domestic product grew 2.4%, up slightly from the average 2.2% growth of 2010-13. Despite the uneven growth, the economy is producing jobs, and U.S. Federal Reserve chairman Janet Yellen says she expects a “further gradual decline in the unemployment rate.”