Washington - The US economy contracted by 0.5 per cent in the third quarter, according to the government's final figures released Tuesday, which were unchanged from previous estimates.

Consumer spending plummeted 3.8 per cent in the July-September period, the worst quarterly drop in 30 years, the US Commerce Department said as a recession in the world's largest economy deepened.

Economists expect fourth-quarter gross domestic product to be even lower. Some have forecast a contraction of as much as 6.5 per cent in the final three months of 2008. (dpa)