US Economy Grows Faster Than First Thought

Posted February 29th, 2012 at 9:55 am (UTC-5)
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The U.S. economy grew a bit faster than first thought in the last few months of 2011, as incomes grew and stores stocked up shelves to meet growing demand.

The Commerce Department says the nation’s gross domestic product expanded at a three percent annual rate.

The GDP sums up all the goods and services produced in a country, everything from new jet planes, to haircuts, to the services of a lawyer.

Wednesday’s report is the latest of a flurry of mostly upbeat data showing the world’s largest economy expanding at a modest pace as it recovers from the worst recession in decades.

However, the rising cost of gasoline may slow economic growth in the first quarter of this year. That is because rising energy prices will leave consumers with less money to spend on other goods. Consumer demand drives about two-thirds of U.S. economic activity.