The economy in the U.S. probably grew at a faster pace in the fourth quarter, driven by the biggest gain in consumer spending in four years, economists projected a report due this week will show.
Gross domestic product rose at a 3.5% annual pace, up from a 2.6% rate in the previous three months, according to the median estimate of 67 economists surveyed by Bloomberg News before a Friday Commerce Department report. Other data may show business investment remained a pillar of the economic rebound, while home prices decreased.
Ford and Apple are among companies benefiting from the pickup in household spending that is forecast to extend into 2011 as tax cuts put more money in Americans' pockets.
Federal Reserve policy makers, when they meet this week, may say the improvement in growth isn't enough to derail a plan to pump more money into financial markets.
"We'll see a very solid quarter from the consumer," said Josh Shapiro, chief U.S. economist at Maria Fiorini Ramirez in New York. "Companies have a lot of cash and they are seeing final demand picking up, so we look forward to another solid year in capital spending."
The GDP estimate is the first of three for the quarter, with the other releases scheduled in February and March.
