US economy: Commerce Department's estimate revised up to 1.4 per cent with consumer spending boost

William Turvill
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US GDP is estimated to have grown 1.4 per cent in the last quarter of 2015 (Source: Getty)

The US economy grew at an annualised rate of 1.4 per cent in the fourth quarter of last year, according to the latest official estimate.

The GDP figure, announced by the US Commerce Department today, was above an initial estimate of 0.7 per cent.

And the second estimate from analysts suggested growth would be one per cent during the period.

Read more: US businesses say economy is stagnating

Overall in 2015, the US economy is estimated to have grown at a rate of 2.4 per cent.

Explaining the better-than-expected figures, the Commerce Department noted that consumer spending was greater than expected.

Reacting to the figures, Gus Faucher, an economist at PNC Financial Services Group told Bloomberg: "It’s really US consumers who are powering the global economy forward at this point."

The 1.4 per cent figure marks a slowdown on the 2.2 per cent average pace of growth set in the first three quarters of 2015.