U.S. economy expands as GDP rises 3.2%

The U.S. economy expanded at a 3.2 per cent annual pace in the fourth quarter, a rise from 2.6 per cent in the previous quarter.

The Commerce Department credited Americans spending money at the fastest pace in four years and U.S. firms selling more overseas for the strong showing.

The 3.2 per cent figure released Friday marks the best showing since early 2009, when the U.S. economy popped out of an 18-month recession before slowing.The economy has now consistently picked up speed since hitting a rough path in the spring.

For all of last year, the economy grew 2.9 per cent, the most since 2005. It was an improvement from 2009, when the economy suffered its worst decline in more than 60 years, reflecting the recession's damage.