Economic activity in the U.S. grew by more than previously estimated in the fourth quarter of 2017, according to a report released by the Commerce Department on Wednesday.
The report said gross domestic product climbed by 2.9 percent in the fourth quarter, reflecting an upward revision from the previously estimated 2.5 percent increase. Economists had expected the pace of GDP growth to be upwardly revised to 2.7 percent.
With the upward revision, the GDP growth in the fourth quarter reflects only a modest slowdown from the 3.2 percent jump in the third quarter.
The Commerce Department said the strongest than previously estimated GDP growth reflected upward revisions to consumer spending and private inventory investment.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, surged up by 4.0 percent in the fourth quarter after climbing by 2.2 percent in the third quarter.
The deceleration in GDP growth in the fourth quarter despite the faster rate of consumer spending growth reflected a downturn in private inventory investment and a substantial rebound in imports, which are a subtraction in the calculation of GDP.
A reading on core consumer prices, which exclude food and energy prices, showed that the pace of price growth accelerated to an unrevised 1.9 percent in the fourth quarter from 1.3 percent in the third quarter.
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