US government figures show that the country's economy grew more quickly than previously estimated in the fourth quarter of 2010.
This came as businesses maintained solid spending and restocked shelves to meet rising demand, while corporate profits increased 3.3%.
Gross domestic product growth was revised up to an annualised rate of 3.1%, the Commerce Department said in its final estimate. This was close to its initial estimate of 3.2% two months ago but better than the 2.8% estimate it made in February.
For the whole of 2010, the US economy grew 2.9%, while corporate profits grew 20.4%, the most since 2004.
Data so far suggest the economy maintained this growth pace in the first quarter, but there are concerns that rising oil prices could affect consumer spending and slow the economic recovery.
The pick-up in growth has been acknowledged by the Federal Reserve, which injected massive amounts of money into the economy to stimulate demand.
The government raised fourth-quarter growth estimates to reflect stronger business spending and inventory accumulation than previously forecast.
Business investment rose at a 7.7% rate instead of 5.3%, lifted by spending on equipment and software, as well as on structures.
Consumer spending - which accounts for more than two-thirds of US economic activity - grew at a 4% annual rate in the final three months of 2010 instead of a previous 4.1% estimate. It was still the fastest since the last three months of 2006.
The growth in exports was not as strong as previously estimated, while imports were revised a touch down.
The GDP report confirmed a pick-up in inflation pressures on surging food and petrol prices. The personal consumption expenditures (PCE) index rose at a revised 1.7% rate in the fourth quarter instead of 1.8%. But a 'core' price index closely watched by the Fed advanced at a revised 0.4% rate instead of 0.5%. The increase was the smallest rise on record.
