US: Economy to grow slightly faster than expected at end of year | News | Current

The US economy ended the year somewhat stronger than previously known. Gross domestic product (GDP) rose 3.4 percent year-over-year in the fourth quarter, according to the Commerce Department's third estimate in Washington.

According to previous figures, the growth was only 3.2 percent. Analysts on average expected the preliminary result to be confirmed. The growth follows strong growth of 4.9 percent in the third quarter.

Growth in the final quarter was broad-based: both consumer spending by private households and investment by firms contributed to it. Government spending and exports rose, while corporate inventory levels weighed on the overall result.

US growth figures are extrapolated annually, ie year by year. They indicate how much the economy would grow if this pace continued for one year. This approach is not used in Europe, so the numbers cannot be directly compared. To get a growth rate comparable to Europe, you would divide the US rate by four.