The U.S. economy weakened more than forecast in the fourth quarter as the housing market struggled and consumer spending grew at a slower-than-anticipated pace, Bloomberg reported. Economic growth slowed to an annual rate of 0.6 percent in October through December, half the rate forecast, following a 4.9 percent pace the previous three months, the Commerce Department said today.

“The economy is still growing, but it’s not growing fast enough,” said Mark Vitner, senior economist at Wachovia Corp. in Charlotte, N.C.

Economists surveyed by Bloomberg News had forecast the economy would grow at a 1.2 percent pace, according to the median estimate of the 77 economists polled. For all of 2007, the economy expanded 2.2 percent, the least in five years, to $11.6 trillion after adjusting for inflation.

Home construction plunged 24 percent last quarter, the eighth consecutive decline and the biggest since the last three months of 1981. That subtracted 1.2 percentage points from growth. Residential construction is now down 29 percent over the last two years, making the current housing slump the worst since 1982.

Consumer spending, which accounts for more than two-thirds of the economy, grew at a less-than-forecast 2 percent pace from October to December and contributed 1.4 percentage points to growth. Spending rose 2.9 percent for all of 2007, the least in four years.