LONDON, Jan 30 - European shares headed south on Friday afternoon after data showed the U.S. economy grew at a slower pace than anticipated in the fourth quarter, raising concerns about recovery of profits. U.S. gross domestic product grew at an annualised rate of four percent in the fourth quarter, short of the 4.8 percent economists had expected. Consumer spending has been the lynchpin of economic recovery, accounting for two-thirds of activity. "It seems to be consumer spending, which has slowed more than people were expecting. That seems to be the key thing," said Kevin Grice, a senior economist at American Express.
However, the data could have a silver lining because it will take pressure off the Federal Reserve to put up interest rates, Grice said. By 1340 GMT, the FTSE Eurotop 300 index <.FTEU3> was off 0.1 percent at 986 points. The DJ Euro Stoxx 50 index <.STOXX50E> shed 0.2 percent to 2,855 points. Among the day's standouts, Swiss staffing firm Adecco said its accounting woes were not a major issue and that its results or finances would not suffer, pushing its shares 14 percent higher to 65.4 Swiss francs. Novartis fell two percent on a report the Swiss drug group may become a "white knight" to rescue French peer Aventis from a hostile bid from domestic rival Sanofi-Synthelabo . Telecoms equipment makers such as Ericsson , Alcatel and Marconi rose on the back of an upbeat earnings report from Canadian peer Nortel Networks . Wall Street looked set to open flat as U.S. stock index futures pared their slim gains after the GDP data. The Chicago purchasing management index of business activity is due at 1500 after Wall Street opens, with the reading forecast to rise to 62 from 59.2 in December.//