U.S. GDP up to 2.8% in fourth quarter (MarketWatch) (27-01-2012)

WASHINGTON - The U.S. economy grew 2.8% in the final three months of 2011, following increases in consumer spending and business inventories, according to a preliminary government estimate.

The increase in gross domestic product was the fastest in a year and a half.

GDP was estimated to reach 3.0% higher. Consumer spending rose 2.0%, compared to 1.7% in the third quarter and Government spending fell at all levels.

Exports climbed 4.7% while imports rose 4.4%. Real final sales in the U.S., which exclude imports and inventories, rose just 0.9% after a 2.7% increase in the third quarter. Inflation as measured by the consumer PCE index rose 0.7%, but that was down sharply from a 2.3% increase in the third quarter.

Excluding food and energy, the index rose 1.1% compared to 2.1% in the third quarter. Real disposable income edged up 0.8% in quarter and the personal savings rate fell to 3.7% from 3.9%.

Source: MarketWatch