WASHINGTON (AP) — The U.S. economy grew at a 2.8 percent annual rate in the final three months of last year, the fastest growth in 2011.
Americans spent more on cars and trucks, and companies built up their stockpiles. But growth in the October- December quarter — and all of last year — was held back by the biggest annual government spending cuts in four decades.
The Commerce Department said today that the economy grew just 1.7 percent last year, roughly half of the growth in 2010 and the worst since the recession.
Most economists expect businesses to ease up on restocking in the first three months of the year. That should slow first- quarter growth. And consumers may cut back on spending if their wages continue to lag behind inflation.
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