The US economy expanded by 1.7 per cent in the fourth quarter of 2005 to just beat a previous estimate of 1.6 per cent growth.
Although the most sluggish showing in three years, the slight upgrade reflected stronger inventory building by businesses than previously thought.
Stephen Stanley, chief economist at RBS Greenwich Capital, summed up the fourth-quarter performance as "pretty dismal", but he added: "Of course we, along with everyone else, look for a snapback" in the current January-to-March quarter.
Private analysts predict growth during this period will clock in at a brisk pace of 4.5 per cent or higher, to be followed by a period of moderation, a 3.4 per cent pace, in the April-to-June quarter.
In other economic news, the US Labor Department said new claims filed last week for unemployment benefits dropped by 10,000, to 302,000, another sign the job picture is turning brighter.
On Wall Street, the Dow Jones industrials lost 65 points to close at 11,150.70.
Federal Reserve Chairman Ben Bernanke and his colleagues said this week that the economy has emerged from the doldrums and has "rebounded strongly" in the January-to-March quarter. "But [it] appears likely to moderate to a more sustainable pace," the board said.