Washington, Feb 27 (IANS) The US economy in the fourth quarter of 2015 expanded faster than previously estimated, as companies’ inventory investment decreased less than previously estimated, the Commerce Department said.
The US gross domestic product (GDP) increased at an annual rate of 1 percent during September-December 2015, higher than the advance estimate of 0.7 percent, said the Commerce Department on Friday, Xinhua reported.
In 2015, the real GDP increased 2.4 percent, the same rate as in 2014.
The upward revision was largely due to a smaller decline in inventory investment than originally estimated, which subtract 0. 14 percentage point from the fourth-quarter GDP growth.
Consumer spending continued to rise steady as households remained upbeat about the labor market. Consumer spending, which accounts for about 70 percent of the US economy, contributed 1.38 percentage points to the GDP growth in the quarter.
Robust growth in real disposable income, partly due to steep declines in oil prices, has boosted spending growth since mid-2014, said Jay Shambaugh, a member of the White House’s Council of Economic Advisers (CEA) in a statement on Friday.