Fourth-Quarter GDP Climbs at a 5.9% Annual Rate

Fourth-Quarter GDP Climbs at a 5.9% Annual RateU. S. economic growth fetched to the strongest momentum in over six years late last year, with the Commerce Department Friday reiterating its fourth-quarter estimate as businesses slowed inventory reduction and boosted spending, however, consumers spent less than expected.

The Commerce Department reported the gross domestic product to climb at a 5.9% annual rate October through September; the fastest rate since the third quarter of 2003, while it widened to 2.2% in the third quarter of 2009.

The new figure was in line with expectations of economists surveyed by Dow Jones Newswires.

GDP declined an unrevised 2.4% for 2009, which was the biggest full-year squeeze since the 10.9% drop in 1946. The economy widened 0.4% in 2008 and 2.1% in 2007.

The gains were unexpected to be sustained unless consumer spending can take up the slack from waning stimulus money.

Also, consumer spending registered a 1.7% jump, in contrast to the earlier speculated 2.0% gain. It had fetched a 2.8% jump in the third quarter, triggered by the Government's "cash-for-clunkers" auto-purchase program.