US economic growth in Q4 revised up to 2.9 per cent rate

WASHINGTON — The U.S. economy grew at a solid 2.9 per cent annual rate in the final three months of last year, a sharp upward revision that caps three straight quarters of healthy growth. The Trump administration is hoping the economy will accelerate further this year, aided by sizable tax cuts and increased government spending.

The Commerce Department says the gross domestic product, the country’s total output of goods and services, was growing at a faster clip than its previous estimate of 2.5 per cent. The gain followed increases of 3.1 per cent in the second quarter and 3.2 per cent in the third quarter.

The updated growth figure reflected in part more spending by consumers in services including auto repairs. Overall consumer spending grew at the fastest pace in three years.