WASHINGTON The US economy grew at a 6.9% annual rate in the final three months of 2021, the Commerce Department reported Thursday, providing further evidence of a robust recovery from the Covid-19 pandemic-induced recession..
The increase in the gross domestic product — the broadest measure of economic output — followed a 2.3% growth rate in the third quarter and a 6.3% rate in the second quarter. It marked the strongest full-year growth since 1984, when the economy expanded by 7.2%..
The latest GDP report showed that consumer spending, which accounts for about 70% of economic activity, increased at a 2.5% annual rate in the fourth quarter, down from a 7.5% growth rate in the third quarter..
Business investment also slowed, rising at a 2.6% annual rate in the fourth quarter, compared with a 12.3% growth rate in the third quarter..
Government spending increased at a 0.9% annual rate in the fourth quarter, following a 0.7% decline in the third quarter..
The GDP report also showed that inflation remained elevated in the fourth quarter, with the personal consumption expenditures price index, excluding food and energy, rising at a 4.9% annual rate. This was up from a 4.6% growth rate in the third quarter..
Overall, the GDP report provided further evidence that the US economy is recovering from the pandemic, but it also showed that some headwinds, such as inflation and supply chain disruptions, are still present..
