Economic Growth Accelerates in Fourth Quarter

Washington, DC, Jan. 28, 2011 -- The U.S. economy accelerated in the fourth quarter, according to the Commerce Department.

In its first estimate gross domestic product for the final three months of 2010, the Commerce Department said GDP rose at a 3.2% annual rate, faster than the 2.6% in the third quarter.

Economists had expected a stronger 3.5% growth rate, however. 

In an important milestone, the level of GDP in the fourth quarter exceeded its previous peak.

This means that the economy has now moved into an expansion phase of the business cycle

For all of 2010, the economy increased 2.9%, marking the biggest annual increase since 2005.