GDP Rose 2.8% in Fourth Quarter

The U.S. economy expanded at a 2.8% annual rate in the fourth quarter, the Commerce Department said Friday.

The gross domestic product growth rate followed a 1.8% gain in the prior quarter.

GDP for the full year expanded at a 1.7% rate, below the 3% growth rate in 2010, Commerce said.

The fourth-quarter rate was below economists’ estimates of 3%, Bloomberg reported.

Consumer spending, which accounts for about 70% of the economy, grew at a 2% rate.

Thursday's fourth-quarter GDP figure was the first of three to be released by Commerce.