The major factors in the upward revision to fourth quarter GDP were stronger investment by businesses in building up stockpiles of unsold goods and a slight boost to consumer spending.
In the fourth quarter, stronger inventory building by businesses resulted in a 0.24 percentage point boost to GDP, a turnaround from the 0.56 percentage point reduction to GDP estimated a month ago.
Consumer spending, which accounts for two-thirds of all economic activity in the United States, increased at a rate of 1.5 percent in the fourth quarter.
That marked a slight improvement over the 1 percent pace previously reported, but still was a pullback from the 4.2 percent rate in the third quarter.