WASHINGTON, March 28 - The U.S. economy grew faster than previously estimated in the fourth quarter, boosted by strong consumer spending and business investment in nonresidential structures like factories and healthcare facilities.
"The economy is in good shape," said Bill Adams, chief economist at Comerica Bank in Dallas."It is operating on a more even keel than during the pandemic and its immediate aftermath." Stocks on Wall Street were little changed ahead of the Good Friday holiday. The dollar rose against a basket of currencies. U.S. Treasury prices were mixed.Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased at a 3.3% rate, adding 2.20 percentage points to GDP growth. It was previously estimated to have grown at a 3.0% pace. The upward revision was in services.
Nearly all industries contributed to growth last quarter, with nondurable goods manufacturing leading the charge, followed by retail trade, durable goods manufacturing and healthcare and social assistance. But agriculture, wholesale trade and arts, entertainment and recreation were minor drags. In principle, GDP and GDI should be equal, but in practice differ as they are estimated using different and largely independent source data. The sharp narrowing in the gap between GDP and GDI should assuage concerns that the economy's health was being overstated.