MercoPress. South Atlantic News Agency

United States GDP expands 2.8% during 2010 following 2.9% contraction in 2009

The fourth quarter brought down the annual average

U.S. gross domestic product expanded at an annualized rate of 2.8% in the fourth quarter of 2010, compared with an earlier estimate of 3.2% GDP growth, the Commerce Department said Friday.

Overall growth for last year was 2.8%, following a 2.9% contraction in 2009.

Two-thirds of U.S. GDP consists of consumer spending, which increased last year at an annualized rate of 4.1%, down from the Commerce Department’s initial estimate of 4.4% yet still the strongest showing since 2006.

Spending by state and local government fell 2.45% in the fourth quarter, while the earlier figures indicated a decline of 0.9%.

Also released Friday was the latest data on consumer confidence as measured by Reuters and the University of Michigan, which showed an increase from 74.2 points in January to 77.5 points this month, the highest level in three years for the Reuters/Michigan Consumer Sentiment Index.