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The U.S. economy grew at an annualized rate of 2.8% in the fourth quarter of 2011, short of economists’ forecasts but at a stronger pace than the 1.8% gain in gross domestic product (GDP) in the third quarter of last year, according to the Commerce Department.  A Bloomberg survey of 79 economists had made a mean forecast of a 3% rise in Q4 GDP.  For all of 2011, the economy expanded at a rate of 1.7%, down from 3% in 2010.

According to the U.S. Department of Commerce, the economy grew at a 3.2% annualized rate in the fourth quarter of last year, raising hopes that the recession is truly a thing of the past and 2011 will be even better than 2010. The fourth quarter growth rate is more than 20% better than the 2.6% rate in the previous quarter and the best quarterly increase since the start of 2010.

For all of last year, the economy grew 2.9% — the most since 2005. A key driver of that growth was increased consumer spending, which rose at 4.4%. That pace, the fastest since 2006, was due mainly to increased purchasing of furnishings, appliances, cars, and clothes.