Nation’s economy grew 3 percent in last quarter of 2011, data show

The nation's economy grew at a quicker rate at the end of 2011 than initially thought, according to new data out Wednesday.

The Commerce Department slightly upgraded gross domestic product (GDP) growth in its second estimate of the figure, saying the economy grew 3 percent after offering an initial estimate in January of 2.8 percent growth in the final quarter of 2011.

The revision depicts an economy that seems to be gaining steam, following just 1.8 percent growth in the third quarter. The economy grew 1.7 percent overall during 2011. The new report marks the latest in a series of strong economic reports.

Earlier in February, the Labor Department released a jobs report that blew away expectations. It reported that the economy added 243,000 jobs in January, after observers had generally expected new jobs to come in closer to 150,000. The uptick in economic growth at the end of 2011 may help explain the surge in hiring at the outset of 2012.

On Tuesday, the Dow Jones Industrial Average closed above 13,000 for the first time since the financial crisis hit in 2008, as stocks have continued a steady climb in recent weeks.

However, good news has not been universal on the economic front, as Tuesday saw new data showing home prices still on the decline nationally, as well as a disappointing report on durable goods.

The government said the boost in GDP growth was due primarily to private investment, personal consumption and exports, while economic growth was restrained thanks to cuts in government spending.

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