U.S. Growth Revised Upward to 3.1% for End of 2010

Spending on consumer goods, exports and fixed investments was strong but investment in business inventory was weak.

The U.S. economy grew faster than first thought at the end of 2010, as consumers spent more and a weaker dollar boosted the country's export sector, the Commerce Department said on March 25.

The economy expanded at a rate of 3.1% in the fourth quarter, revised up from the earlier estimated of 2.8%, the department said.

On the back of a 2.6% growth rate in the third quarter, the new data was a strong sign of the U.S. economic recovery gaining momentum at the end of the year.

While spending on consumer goods, exports and fixed investments were strong in the quarter, the economy was still held back by weak investment in business inventory, and the deep spending cutbacks by state and local governments across the country, the department said.

The new figures also gave a 0.1 percentage point boost to the growth estimate for all of 2010, which now stands at 2.9%, showing a solid rebound from the 2009 recession.

Copyright Agence France-Presse, 2011

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