The US economy grew by 2.9% in the fourth quarter, more than expected

The US economy expanded again during the fourth quarter, registering solid growth even as consumers and businesses battled inflation and historically high interest rates.

Gross domestic product — the broadest measure of economic activity — increased at an annualized rate of 2.9% from October to December last year, according to Commerce Department data released Thursday.

That’s a slowdown since summer, when the economy saw growth of 3.2% in the third quarter — but an improvement on the first half of the year, which showed two consecutive quarters of contraction.

Economists were expecting fourth-quarter GDP to grow at an annualized adjusted rate of 2.6%.

For 2022, GDP expanded 2.1%, according to the Commerce Department report.