US growth revised upward to 3.1% for the end of 2010

The US economy grew faster than first thought at the end of 2010, as consumers spent more and a weaker dollar boosted the country’s export sector, the Commerce Department said.

The economy expanded at a rate of 3.1 per cent in the fourth quarter, revised up from the earlier estimated of 2.8 per cent, the department said.

On the back of a 2.6 per cent growth rate in the third quarter, the new data was a strong sign of the US economic recovery gaining momentum at the end of the year. While spending on consumer goods, exports and fixed investments were strong in the quarter, the economy was still held back by weak investment in business inventory, and the deep spending cutbacks by state and local governments across the country, the department said.

The new figures also gave a 0.1 percentage point boost to the growth estimate for all of 2010, which now stands at 2.9 per cent, showing a solid rebound from the 2009 recession.