Washington, DC, March 30—Gross Domestic Product grew at an inflation-adjusted annualized rate of 3.8 percent in the fourth quarter, according to Commerce Department estimates.
The third and final estimate of real gross domestic product was unchanged from the estimate given a month ago.
Economists had been expecting GDP growth to be revised to a 4.0 percent rate in the quarter.
For all of 2004, the economy grew at a 4.4 percent pace.
In the fourth quarter, small upward revisions to exports and consumer spending were offset by a downward revision to inventory investment.
Inflation was slightly stronger than previously estimated.
Corporate profits after taxes climbed 12.5 percent during the fourth quarter to a record seasonally adjusted annual rate of $973 billion - the strongest increase in profits since an 18.9 percent surge in the fourth quarter of 2001.
The personal consumption expenditure price index - the Federal Reserve's favorite inflation measure - rose at a 2.7 percent annual rate, not 2.5 percent as previously estimated.
The core personal consumption expenditure price index rose at a 1.7 percent annual rate, compared with the previous estimate of a 1.6 percent increase.
Consumer spending increased 4.2 percent in the quarter. Spending on durable goods was revised to a 3.9 percent increase from the previous estimate of a 3.1 percent gain.
