It's good news but here are some of the details.
The U.S. economy surged at the end of 2009, a bigger-than-expected gain driven more by slower inventory liquidation than by consumer spending.
GDP has gone up two straight quarters, rising 2.2% in the third quarter after a year of contraction. In all of 2009, GDP fell 2.4%, the biggest drop for an entire year since 10.9% in 1946. GDP rose 0.4% in 2008 and 2.1% in 2007.
Companies earlier in the year had slashed excess supplies by $139.2 billion in the third quarter and $160.2 billion in the second. The recession snuffed demand and had left storerooms and shelves bulging with unsold merchandise.
The slower fourth-quarter inventory drawdown added 3.39 percentage points to GDP.
Consumer spending, on the other hand, contributed 1.44 percentage points. Spending is the largest component of GDP, the so-called big engine of the economy. The report Friday said it rose by 2.0% in the fourth quarter. Third-quarter spending had climbed higher, rising 2.8% with the support of the government "cash-for-clunkers" subsidy program.
Inflation rose 1.4% in the fourth quarter, after rising 1.2% in the third quarter. Fed officials define their statutory goal of price stability as inflation of 1.5% to 2%.
Other price inflation gauges also rose modestly. The price index for personal consumption expenditures climbed by 2.7% after increasing 2.6% in the third quarter.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, rose by 2.1%, after increasing 1.3% in the third quarter. The chain-weighted GDP price index increased 0.6%, after rising 0.4% in the third quarter.
Another component of GDP, housing, rose a second straight quarter. Residential fixed investment increased by 5.7% October through December. It surged 18.9% in the third quarter; builders were breaking ground as a government tax credit spurred buying of new houses.
Federal government spending in the fourth quarter increased 0.1%, after rising 8.0% in the third quarter. State and local government outlays fell 0.3%, the fourth drop in five quarters.
International trade gave a mild push to GDP. U.S. exports surged 18.1%, while imports increased 10.5%.
Business spending also boosted GDP. It rose by 2.9% in the fourth quarter, after falling 5.9% in the third quarter.