US economic growth was revised downward to an annual rate of 2.8 percent in the fourth quarter of 2010, compared with the estimated pace of 3.2 percent in January, the Commerce Department announced on Friday.

The increase in real gross domestic product in the fourth quarter primarily reflected positive contributions from personal consumption expenditures, exports, and nonresidential fixed investment that were partly offset by negative contributions from private inventory investment as well as state and local government spending, the department said in a report.

Figures showed that real federal government consumption expenditures and gross investment decreased 0.2 percent in the fourth quarter, in contrast to an increase of 8.8 percent in the third quarter.

Real state and local government consumption expenditures and gross investment decreased 2.4 percent, compared with an increase of 0.7 percent in the third quarter. Real personal consumption expenditures increased 4.1 percent in the fourth quarter, stronger than a gain of 2.4 percent in the third quarter. However, real nonresidential fixed investment growth slowed to a 5.3 percent in the fourth quarter from a 10 percent rise in the third quarter.

With only about a week left before federal spending runs out on March 4, Democratic and Republican parties have not achieved a compromise and put an end to the 2011 fiscal year federal budget stalemate.