New data out of the Bureau of Economic Analysis shows the U.S. economy expanded at a much faster pace than originally reported, jumping 20 basis points to 3.0 percent.
Economists polled by Bloomberg forecast no change from the first reading of 2.8 percent, and more than 35 percent predicted a further revision lower.
"The upward revision to fourth-quarter GDP growth reflected an upward revision to consumer spending for services that was partly offset by a downward revision to consumer spending on goods, mainly nondurable goods. In addition, business investment was revised up, largely reflecting an upward revision to structures, and imports were revised down." the BEA said in a statement.
Personal consumption was revised 20 basis points higher as well, to an annualized rate of 2.1 percent. The GDP Price Index was corrected to a 0.9 percent jump, from earlier estimates of 0.4 percent. The Price Index gauges inflation during the year. Read more.....