Revised data: US grew faster in 2nd half of 2013

Fuelled by healthier consumer spending, the US economy grew in the second half of last year at the strongest pace in a decade and more than previously estimated, new government data show.
Revised data released today also suggest a possible factor behind the pickup: Americans saved much more in 2012 than previously thought, leaving more to spend in 2013.
The economy grew at an annual rate of 4.5 per cent in last year's third quarter, up from a previous estimate of 4.1 per cent. Growth was 3.5 per cent in the fourth quarter, up from 2.6 per cent. The average 4 percent annual pace was the best six-month showing since 2003.

The government's newly revised figures show that growth was accelerating before harsh weather in the first quarter contributed to a sharp contraction. And growth rebounded to a strong 4 percent annual rate in the April-June quarter, the government said today. The figures indicate that the 2.1 per cent contraction in the first quarter was an aberration. That figure was revised higher from a previous reading of a 2.9 per cent contraction.
The better growth readings also suggest that this year's stronger hiring trend will continue. Previously, the job gains in the first six months of this year were much stronger than the growth figures. Now they are more closely aligned.

Still, growth was weaker in 2011 and 2012 than the government had previously estimated, the revisions show.

Overall, the growth trend since the Great Recession was little changed by the government's updates. The new figures show that growth has averaged 2.3 per cent at an annual rate from the end of the recession in June 2009 through last year. That's a scant downgrade from the previous estimate of 2.4 per cent.
In 2013 as a whole, the economy expanded 2.2 per cent, up from the previous estimate of 1.9 per cent. It grew just 2.3 per cent in 2012, down from 2.8 per cent. And growth in 2011 was marked down to 1.6 per cent from 1.8 per cent.

The changes stem from a comprehensive revision the government conducts each year to the nation's gross domestic product data. GDP, the broadest measure of the economy's output of goods and services, includes everything from restaurant meals to television production to steel manufacturing. Most of the changes were made to the previous three years' figures.