The U.S. economy grew at a much faster pace in the fourth quarter than earlier estimated, according to Commerce Department data released Wednesday.
Gross domestic product grew at a 2.9 percent annualized rate, revised up from 2.5 percent. Economists had estimated an upward revision to 2.7 percent.
The upward revision means the economy was much closer to the 3 percent growth targeted by the Trump administration.
Consumer spending grew at 4 percent, compared with the earlier estimate of 3.8 percent. Economists had expected no change from the earlier estimate of the biggest part of the economy.
Nonresidential fixed investment rose 6.8 percent, up from 6.6 percent. Investment in structures, such as new offices and stores, rose 6.3 percent, compared with the earlier estimate of just 2.5 percent.
Inflation adjusted gross domestic income rose 0.9 percent.
Wednesday’s report also contained the first look at corporate profits, which were up 2.7 percent compared with the prior year. That indicates a healthy level of growth and points toward further business investment and job creation, particularly when coupled with the powerful stimulus of last year’s large corporate income tax cut.
This was the last of the three official estimates for the fourth quarter of 2017.