The US economy grew more slowly in the third quarter, the Commerce Department reported on Thursday, with gross domestic product expanding at an annualised rate near 2 percent as consumer spending moderated. The figure fell short of the stronger pace recorded in the second quarter.

The Bureau of Economic Analysis said softer household consumption and cooling business investment weighed on output, even as net exports provided modest support. Economists had widely expected deceleration following months of tighter credit conditions and a weakening labour market.

The release landed one day after the Federal Reserve's policy meeting, where policymakers signalled continued caution on inflation while weighing the risks of a slowing economy. Markets had priced in another quarter-point rate cut as the central bank attempts to engineer a soft landing.

The data arrived during one of the busiest weeks of the corporate earnings season, with major technology and industrial firms reporting results. Economists at Goldman Sachs and Morgan Stanley said the growth figures supported expectations that the Fed would ease policy again before year-end.

Gregory Daco, chief economist at EY-Parthenon, said: "The economy is downshifting but not stalling. Consumers are more cautious, and that gives the Fed room to continue cutting rates gradually."