Washington, DC, February 25--The economy in the fourth quarter grew at an annual rate of 3.8 percent, according to a report from the Commerce Department. The growth was stronger than the 3.1 percent from the estimate a month ago.
Economists had forecast an upward revision of 3.6 percent at annual rate.
The upward revision was largely the results of greater exports and business spending, which were partially offset by lower consumer spending and higher imports.
As a result of the revision, the economy only slowed down slightly in the fourth quarter from the 4.0 percent rate in the third quarter. The small deceleration reflected a slowdown in consumer spending and a widening trade deficit.
Consumer spending in the fourth quarter increased at a 4.2 percent rate, down from 5.1 percent in the third quarter. This is below the initial estimate of a 4.6 percent increase.
Most of the downward revision was due to lower car and truck sales. Spending on durable goods rose 3.1 percent in the fourth quarter, down from the initial estimate of a 6.7 percent increase.
Despite the fourth quarter revision, for all of 2004, the economy grew a 4.4 percent, unrevised from the initial estimate last month. This is the fastest real growth since 1999's 4.5 percent rate.
