Fourth-Quarter GDP Grows at Fastest Pace in Six Years

The U.S. economy expanded at a 5.7% annual rate in the fourth quarter of last year, the fastest pace since the third quarter of 2003, the Commerce Department said Friday.

The gross domestic product gain topped economists’ forecasts of a 3.4% increase, Bloomberg reported.

For all of 2009, GDP dropped 2.4%, the worst yearly rate since 1946.

Consumer spending, which comprises about 70% of the economy, rose 2%. It grew 2.8% in the third quarter, boosted by the government’s “cash for clunkers” program.

Equipment and software purchases grew at a 13% pace during the quarter, while commercial construction dropped 15%. Business investment gained 2.9%

The GDP price gauge increased at a 0.6% pace.