国际英语新闻：U.S. economy expands 3.2 percent in 4th quarter of 2010

WASHINGTON, Jan. 28 (Xinhua) -- The U.S. economy expanded by an annual rate of 3.2 percent in the fourth quarter of 2010, partly boosted by personal consumption and exports, the Commerce Department reported Friday.

U.S. real gross domestic product rose at an annual rate of 3.2 percent in the fourth quarter of 2010, quicker than the 2.6-percent pace in the third quarter of 2010. It was the best quarterly showing since the start of last year.

For all of 2010, the economy grew 2.9 percent, the most since 2005. It was an improvement from 2009 when the economy suffered its worst decline in more than 60 years.

Increased consumer spending was a key reason the economy grew more strongly. Americans boosted their spending at a 4.4 percent pace, the most since 2006. They spent more on furnishings, appliances, cars and clothes.

That's largely why economists are more optimistic about the economy's performance this year. Consumer spending accounts for roughly 70 percent of overall economic activity.

"The increase in real GDP in the fourth quarter primarily reflected positive contributions from personal consumption expenditures, exports, and nonresidential fixed investment that were partly offset by a negative contribution from private inventory investment. Imports, which are a subtraction in the calculation of GDP, decreased," the Commerce Department said.

Stronger sales of U.S. exports to foreign buyers was another major force helping the economy at the end of last year. Exports grew at a 10 percent pace, up from a 5.8 percent pace in the July-September quarter. Economists expect sales of exports to continue to provide support for the economy this year.

Business spending on equipment and software also helped growth in the October-December quarter. Businesses also started spending again on home building and commercial construction projects after deep cutbacks.

Government spending, however, stopped being a source of growth for the economy at the end of last year. It dipped 0.6 percent in the October-December quarter _ the first drop since the start of 2010.