US economy surprises with faster than expected growth

The US economy grew faster than expected in the final months of last year, driven by robust household and government spending.

The world's largest economy expanded at an annual rate of 3.3% over the three months to December, the Commerce Department said.

That was much faster than the 2% many analysts had expected, though down from 4.9% in the prior quarter.

For 2023, the economy grew at an annual rate of 2.5%, up from 1.9% in 2022.

The figures cap a year that has been characterised by unexpected economic resilience, even as the US central bank raised borrowing costs sharply and inflation cooled.