Fourthquarter GDP growth revised up to 3.4 rate
Consumer spending, business investment revised higher
Corporate profits increase, boost GDI growth
Weekly jobless claims fall 2,000 to 210,000

WASHINGTON, March 28 Reuters The U.S. economy grew faster than previously estimated in the fourth quarter, boosted by strong consumer spending and business investment in nonresidential structures like factories and healthcare facilities.

The report from the Commerce Department on Thursday also showed profits rising at a solid clip last quarter, driven by nonfinancial corporations. Increasing profits, together with rising worker productivity, could encourage companies to retain their employees.

Labor market resilience is underpinning consumer spending, keeping the economy afloat despite dire predictions of a recession in the aftermath of 525 basis points worth of interest rate hikes from the Federal Reserve since March 2022 to quell inflation.

The consumer will be front and center when it comes to gauging the strength left in this recovery, and their spending that has shifted to services will be critical this year, said Christopher Rupkey, chief economist at FWDBONDS in New York.

Gross domestic product increased at a 3.4 annualized rate last quarter, revised up from the previously reported 3.2 pace, the Commerce Department39;s Bureau of Economic Analysis said in its third estimate of fourthquarter GDP.

The revision reflected upgrades in consumer spending, business…