U.S. Economy Growth Rate Up 3.5% in Q4 2006

The U.S. economy, as measured by GDP, grew 3.5% in the fourth quarter of 2006, according to the latest release from the Bureau of Economic Analysis (BEA). This compares to a worrisome growth rate of only 2% in Q3, and closer to the annual 3.2% growth rate in 2005.

The BEA credited the increase in growth to personal consumption, higher exports and higher government spending. Imports were lower, which also helped the growth rate. This can be attributed to lower oil prices, which were 12% of imports in 2005.

Source: BEA, "GDP Q4 Advance Release".