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In the fourth quarter the economy grew at a rate that most analysts surveyed by Thomson IFR Markets projected, an annualized 0.6 percent pace, said the Commerce Department. That lines up with the previous estimate.

Consumer Spending

Even though consumer confidence numbers were said to have fallen, consumers continue to spend, as numbers were revised up to 2.3 pecent growth from the projected 1.0 percent. According to the Commerce Department, the majority of that increase came from an increase in spending on services. Growth there was revised from 2.1 percent to 2.8 percent.

Even so, economist Joshua Shapiro of MFR stated that "Consumer spending is under serious pressure from a weakening labor market, ongoing carnage in the housing industry, and overly indebted household balance sheets."

Exports

Exports unsurprisingly also continue to grow, with the weak U.S. dollar stimulating foreign purchases. Exports almost increased by 2 percent, growing from 4.8 percent to 6.5 percent. Imports dropped a little, falling from 1.4 percent from 1.9 percent.

As a result of all that, the GDP growth increased from 0.90 positive growth to 1.02 percent positive growth.

Inflation also had a small improvement, as it fell from 4.1 percent to 3.9 percent. Welcome news, but still out of the Fed's goal of about 2 percent.

The estimate by the governement of 0.6 percent growth in the fourth quarter remains the same.