The economy is growing slightly faster than expected at the end of the year by dpa-AFX

Washington (dpa) – The US economy grew somewhat more strongly at the end of the year than previously known. In the fourth quarter, gross domestic product rose by an annual rate of 3.4 percent compared to the previous quarter, the Commerce Department announced Thursday in Washington based on a third estimate. According to previous figures, growth reached only 3.2 percent. Analysts on average expected the preliminary result to be confirmed. The growth follows a strong 4.9 percent increase in the third quarter.

The development in the last quarter had a broad basis: both consumer spending by private households and corporate investments contributed. Government spending and exports also increased, while corporate inventory levels impacted the overall result.

US growth figures are estimated on an annual basis, that is, they are extrapolated over the course of the year. It indicates how much the economy will grow if the pace continues for a year. This approach is not used in Europe, which is why the numbers cannot be directly compared. To get a similar growth rate to Europe, you would have to divide the US rate by four.