New data from the United States Commerce Department reveals that the economy grew at a slower rate than experts had originally predicted for the fourth quarter of 2010.
On Feb. 25, the agency reported that the gross domestic product (GDP), which represents economic growth, increased at an annual rate of 2.8 percent in the final quarter of last year. This figure was lower than its initial estimate of 3.2 percent.
Deep budget cuts by State and local governments contributed to the sluggish pace by slashing spending at a 2.4 percent rate between October and December 2010. In addition, consumer spending rose at a rate of 4.1 percent, which is smaller than the original estimate of 4.4 percent.
"There are still signs the recovery is taking root, and it appears sustainable, but not strongly enough to significantly lower unemployment," Scott Brown, an economist at Raymond James, told Forbes.
State budgets and the economy were slated to be major topics at the National Governors Association's annual winter meeting this past weekend in Washington, D.C. President Barack Obama was scheduled to meet with Democratic governors on Feb. 25 to discuss job creation, then host bipartisan events on Feb. 27 and Feb. 28.