Commerce Confirms Economy Grew at 4.1% Clip in 4Q

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he U.S. economy expanded at a 4.1% annual rate in the fourth quarter, the Commerce Department said Thursday, in its final report on economic growth during the last three months of 2003.

The increase in gross domestic product, the value of all goods and services produced, followed an 8.2% rise in the third quarter. The expansion in last year's second half was the strongest six months since the first two quarters of 1984, Commerce said.

The fourth-quarter growth rate was the same as the government's earlier estimate, although Commerce said consumer spending grew at a 3.2% annual pace from October through December, compared with a previously estimated 2.7% clip.

Commerce also said companies added to inventories at a slower pace than previously reported. Stockpiles grew $9 billion at an annual rate, compared with $14.9 billion previously reported and a $9.1 billion drop in the third quarter.

Business fixed investment, which includes spending on commercial construction as well as equipment and software, grew at a 10.9% annual rate in the fourth quarter, revised from a 9.6% increase.

Adjusted for inflation, GDP totaled $10.6 trillion at an annual rate. The GDP price deflator used to adjust the figures rose at a 1.5% annual rate, compared with a 1.2% previously reported and a 1.6% rate in the third quarter.

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