Washington, DC, February 28, 2006-- The economy grew at a 1.6% annual pace in the fourth quarter, a bit faster than previously thought, while core inflation was a touch lower, according to the Commerce Department.
In its second estimate of real seasonally adjusted gross domestic product, the department said inventory rebuilding accounted for all of the growth in the economy during the quarter.
A month ago, the government had said GDP increased at a 1.1% annual pace.
The revisions met the expectations of economist.
Inventory rebuilding was revised higher, as was spending by consumers, businesses and governments. The trade deficit was more of a drag than in the earlier estimate.
