US growth revised upwards to 4.1%

The cold US winter has seen healthy spending on clothes

The US economy expanded at an annual rate of 4.1% in the final three months of 2003, new figures show.

The numbers from the Department of Commerce are slightly ahead of a first estimate of 4% released last month.

They represent a return to more normal growth from the breakneck 8.2% rate seen in the previous quarter.

The growth rate was underpinned by business investment according to the data, while consumer spending is slowing in line with recent surveys.

The 15% annual rate of expansion in business investment - well above the 10% rate first estimated - may mean more jobs.

The loss of 2.2 million jobs since early 2001 is likely to be a key part of the presidential election due in November.

The White House insists job growth will come back on track this year, even though President George W Bush and others have backed away from their own official predictions of 350,000 new jobs a month.

But the Democratic contenders argue that the administration's policies may be producing growth, but that its focus on tax cuts for the wealthy results in heavy deficits but little gain for ordinary Americans.