WASHINGTON, March 30 (Xinhua) -- The U.S. economy increased at an annual rate of 1.7 percent in the final quarter of 2005, slightly higher than the 1.6 percent rate estimated a month ago, the Commerce Department reported on Thursday.

    However, the gain in the fourth quarter of last year is still the slowest pace in the past three years and followed a strong increase of 4.1 percent in the previous quarter. The U.S. economic growth in the final quarter was the slowest since 0.2 percent gain in the last quarter of 2002.

    The report showed that U.S. consumer spending in the final quarter of 2005 grew at a pace of just 0.9 percent, the weakest since the first quarter of 1995. It compared with the 4.1 percent gain in the third quarter and was lower than 1.2 percent gain estimated last month.

    A cut in spending on big-ticket goods, such as cars, was the main culprit behind the lethargic showing in overall consumer spending which accounts for about two-thirds of U.S. gross domestic product (GDP).

    Businesses spending on structures and equipment was weaker than first thought. Business investment spending rose at a 4.5-percent rate in the quarter, slower than the originally reported 5.4 percent advance.

    Cuts in spending by the U.S. government also contributed to the fourth-quarter's weak performance.

    GDP measures the value of all goods and services produced within the United States and is considered the best gauge of the economy's performance.

    Many analysts have predicted that the U.S. economic growth in the first quarter of this year will reach a brisk pace of 4.5 percent or higher. Enditem