Economy's growth in a slump

The U.S. economy grew at an annual rate of 1.7 percent last quarter, the slowest in almost three years, while an inflation measure watched by the Federal Reserve rose more than earlier reported.

The final revision of gross domestic product compares with growth of 1.6 percent reported last month, the Commerce Department said Thursday in Washington. The inflation gauge rose at an annual pace of 2.4 percent, up from 2.1 percent.

Business profits rose the most in 13 years, giving companies the means to increase investment that economists said will propel growth this year. A rebounding economy and inflation above central bankers' 1 percent to 2 percent comfort zone reinforced expectations the Fed will continue raising interest rates. Treasury notes fell after the report.