GDP Grew 2.8% in Fourth Quarter

Washington, DC, Jan. 27, 2012 -- The U.S. economy grew 2.8% in the final quarter of 2011, according to the Commerce Department.

Growth was fueled by increases in consumer spending and business inventories.

The increase in gross domestic product was the fastest in a year and a half, although lower than economists' expectations of a 3.0% rise.

Inventory spending surged to an estimated $56 billion after a $2 billion decline in the third quarter. Consumer spending rose 2.0%, compared to 1.7% in the third quarter.

Government spending fell at all levels. Exports climbed 4.7% while imports rose 4.4%. Real final sales in the U.S., which exclude imports and inventories, rose just 0.9% after a 2.7% increase in the third quarter. %.