The U.S. economy was weaker than first thought for the final three months of 2014, growing at an annual rate of 2.2 percent, the government reported Friday.
The number from the Bureau of Economic Analysis is the second revision of growth numbers for the final quarter of last year. In January, the first estimate showed growth of 2.6 percent.
The revision means that full-year growth for 2014 was 2.4 percent, a few ticks better than the 2.2 percent growth in 2013.
The fourth-quarter number was dragged down in the revision by continued declines in government spending and smaller business inventories than first thought. That actually bodes well for the first three months of this year as firms are likely to replenish supplies as a faster pace that first thought.
Government spending slowed by 7.5 percent in the final quarter, after declining almost 10 percent the prior quarter. Driving the decline in overall government expenditures was defense spending, which fell 12.4 percent in the quarter.
Second estimates are made with more incoming data and present a fuller picture of economic activity. A third and final estimate comes on March 27.