Washington  - The US economy shrank by 6.2 per cent in the final quarter of 2008, far worse than initially estimated and the worst fourth-quarter showing by the country since the recession of 1982, Washington reported Friday.

In its latest estimate of the gross domestic product (GDP) performance, the US Commerce Department annualized figure was much worse than the initial estimate of a 3.8 per cent drop in the last quarter.

The final quarter figure underscored the severity of the recession in the US economy, following on the 0.5 per cent drop in the third quarter of 2008.

The figures are the second of three given for the quarter, with the Bureau of Economic Analysis due to issue the final numbers next month.

According to a New York Times report, the downward revision resulted chiefly because a larger than expected contraction of inventories of unsold goods, lower consumer sales, and a wider foreign trade deficit. (dpa)