The numbers: The U.S. economy expanded in the fourth quarter at a revised annual rate of 4.3% (a touch higher than previously reported) and even faster growth is expected in the coming months.
Gross domestic product increased by 4.1% over the previous reading, mainly due to slightly higher business investment, according to revised government data.
The economy appears to be accelerating again after slowing towards the end of the year following a record outbreak of coronavirus. Economists surveyed by the Dow Jones and The Wall Street Journal predict that GDP will grow at a rate of 4.9% in the spring and 7% in the summer.
GDP is the sum of all goods and services produced by the economy and constitutes a kind of scorecard for U.S. performance.
The Office of Economic Analysis updates the GDP report twice after its initial release, as more timely information is obtained to give a more complete view of the performance of the economy.
Read: The US economy is accelerating in March and is not about to slow down
What happened: The biggest change in the fourth-quarter GDP report was in business investment. Investment in inventories, intellectual property and residential housing was much higher than previously reported.
Exports also increased by a revised 22.3% compared to the previous reading of 21.8%. And state and local spending was not as weak as previously reported.
The increase in consumer spending, by far the largest contributor to the GDP report, reduced the tic to 2.3% from 2.4%.
Most of the other figures earning the report changed little.
The big picture: The economy is picking up speed again due to declining coronavirus cases, rising vaccinations and warmer weather. A $ 1.9 trillion federal stimulus will give the economy an extra boost.
The biggest unknown is whether the coronavirus will continue to disappear.
Another potential thorn is rising inflation. The recovery has led to rising prices on many key supplies, a problem exacerbated by the growing shortage of key materials ranging from wood to computer chips.
Read: Economists say inflation risks are higher in two decades and could force Fed to raise interest rates in 2022
Market reaction: The Dow Jones Industrial Average DJIA,
and S&P 500 SPX,
they were set to open lower on Thursday trades.