Economy expands at 2.2% pace in 4th quarter

Washington

THE US economy expanded at 2.2 per cent annualised pace in the fourth quarter, led by the biggest gain in consumer spending in eight years.

The revised increase in gross domestic product, the value of all goods and services produced, matched the Commerce Department's previous estimate, according to figures issued on Friday in Washington. The report also showed corporate profits dropped in the last three months of the year, capping the worst annual performance since the recession.