U.S. economy slowed more than economists expected in fourth quarter.

U.S. GDP rose at a 1.4% annualized rate in the fourth quarter, below economists' roughly 3.0% forecast, and the Congressional Budget Office estimated last year's government shutdown reduced fourth-quarter output by about 1.5 percentage points.

U.S. economic growth slowed in the fourth quarter, with gross domestic product rising at a 1.4 per cent annualized rate according to the Commerce Department's advance estimate. That pace was below economists' Reuters survey forecast of about 3.0 per cent and followed a 4.4 per cent gain in the third quarter. Officials and analysts cited disruptions from last year's 43-day government shutdown and a moderation in consumer spending, while some reports said tax cuts and investment in artificial intelligence may support activity this year. Report highlights: - The Bureau of Economic Analysis reported a 1.4 per cent annualized increase in fourth-quarter GDP in its advance estimate. - Economists polled by Reuters had forecast roughly a 3.0 per cent pace; the survey was completed before data showing a wider trade deficit in December. - The nonpartisan Congressional Budget Office estimated the government shutdown reduced fourth-quarter output by about 1.5 percentage points and said most lost output would be recovered, with $7 billion to $14 billion possibly not recovered. - The report described a "K-shaped" expansion, noting weaker job growth and slower consumer spending compared with earlier quarters. Summary: The slower-than-expected GDP reading points to a softer quarter with uneven gains across the economy. Undetermined at this time.