The Census Bureau reported that the economy grew faster than initially reported in the fourth quarter of 2011.
Gross Domestic Product or GDP – initially reported as 2.8%, was revised upward to 3.0% in the fourth quarter of 2011.
This was in addition to the 1.8% GDP increase in the third quarter and gives another signal of recovery of the U.S. economy.
“We are seeing what historically would be considered a healthy growth rate for the country,” said Brian Hamilton, CEO of Sageworks, a financial information company. “Last quarter compares very favorably to the GDP growth rate over the past few years and indicates the country continues to recover from the recession.“.
Personal spending increased 2.1% in the fourth quarter, compared with an increase of 1.7% in the third. Durable goods also increased strongly by 15.3 percent, compared with growth of 5.7% in the third quarter.
In addition, businesses increased their inventories by $54.3 billion, after cutting back on their stock the prior two quarters.