The US economy slowed sharply in Q4 of 2015, growing with an annualized rate of 0.7% comparing with the same quarter a year ago, official figures show.

The rate of growth marks a sharp slowdown from the 2% growth recorded in Q3 of 2015.

According to the Department of Commerce, one reason for the slower growth was a slowdown in consumer spending.

Export growth was also slower as the strong dollar made US goods more expensive outside the country.

Energy sector investment continued to plummet, with spending on mining exploration, wells and shafts down 38.7%, a slightly less dramatic fall than the 47% drop seen in Q3.

Overall, investment in the sector was down 35% in 2015, the largest drop since 1986.

Unseasonably mild weather held back some consumer spending, with another brake on growth from manufacturers who needed to run down surplus stock rather than make new goods.

Both factors are seen as temporary.

Overall, the US economy grew by 2.4% in 2015, and is expected to pick up steam to give a similar growth figure this year.

On January 27, the Federal Reserve said that growth had “slowed late last year” but that employment had picked up.

At the end of 2015, the Fed was sufficiently confident in the strength of the US economy to raise rates for the first time since 2006.