U.S. Economy Grew Much Faster Than Expected in the Fourth Quarter

The U.S. economy was unexpectedly strong in the fourth quarter of last year after a spurt of faster growth in the second and third quarters, with consumers keeping up spending and businesses expanding investment amid fears of higher interest rates and a rocky stock market.

Gross domestic product—the value of all goods and services produced in the U.S., adjusted for inflation—expanded at an annual rate of 2.6 percent for the months October through December, the Commerce Department said Thursday. That marked a slowdown from the 3.4 percent growth rate registered in the July through September period and the booming 4.2 percent rate in the April through June.