WASHINGTON (voa) – New government figures show the U.S. economy grew at a higher-than-expected rate in the fourth quarter of last year, propelled by a big surge in consumer spending.
The Commerce Department reports fourth quarter gross domestic product (total economic output) grew at an annual rate of 1.4 percent, much stronger than the 0.2 percent growth rate originally reported a month ago.
The bigger-than-expected increase came as consumer spending on expensive items like cars and appliances rose at its fastest pace in 15 years. Consumer spending, which makes up a majority of U.S. economic output, has powered the economy through the recession, which most economists say ended recently.
Economists also say the Federal Reserve in the months ahead will be looking to see if an economic recovery fuels inflation. If that happens, the Fed may begin raising interest rates, after cutting them several times last year.
Earlier this week Fed Chairman Alan Greenspan said the economy is beginning to turn around, but added that growth may be slow in the months ahead.
