Economy grew slower than first estimated at the end of 2010

The nation’s economy grew less quickly at the end of 2010 than previously estimated, the Commerce Department reported Friday.

The nation’s gross domestic product grew just 2.8 percent in the fourth quarter of 2010, according to the new report. Last month, the government pegged economic growth during that period at 3.2 percent, the highest such rate since the beginning of last year. The new estimates are based on more complete data.

{mosads}The earlier figure had driven optimism that 2011 could be a year of stronger economic recovery as the nation works to dig itself out from the deep recession of recent years.

But the lower figure is the latest curveball policymakers will have to grapple with as they argue over how much federal spending should be cut. Republicans are demanding major cuts in an effort to get the nation’s fiscal house in order, but critics have warned that too deep of cuts too quickly could hamper a fledgling economic recovery that still needs government support.

The reduction was driven largely by more imports than previously estimated, coupled with lower levels of state and local government spending and personal consumption than initially thought.

Despite the tempered second take, the economic data still paint in broad strokes a picture of a slow economic recovery.

In all of 2010, the economy grew at a rate of 2.8 percent, compared to a 2.6 percent decrease in 2009. The boost was driven primarily by increased private investment, exports, personal consumption and federal government spending.