US economic growth was moderately stronger in the fourth quarter than previously thought, official figures showed today.
The Commerce Department report showed that gross domestic product (GDP) expanded at a 2.5% annual rate instead of 2.2%, in a final revision of fourth-quarter economic performance.
Economists had expected the final fourth-quarter reading of GDP growth to be unrevised at 2.2%.
The final figure was up from a 2% rate in the third quarter and meant the economy expanded by 3.3% during the whole of 2006.
The department said companies added to inventories at a $22.4-billion annual rate in the closing quarter of 2006 rather than the $17.3 billion rate it reported a month ago and said that was the main reason for the upward revision in fourth-quarter GDP.
Higher inventories were mostly accounted for by larger stocks of motor vehicles.
Larger inventories can reflect a backlog of unsold goods or businesses building stocks up in anticipation of better sales ahead.
