Revised GDP showed faster growth in Q4 2009

The economy grew at a faster pace than initially thought at the end of 2009. It grew at a 5.9% annual rate in Q4, up from the Commerce Department's initial reading of 5.7% and the fastest pace in six years.

The better-than-expected Q4 growth figure came as companies cut inventories at a slower pace, accounting for 3.9 percentage points of the 5.9% growth figure. Business investment also rose at a much faster pace than initially reported. However, consumer spending, which accounts for about 70% of economic activity, remained weak.

For all of 2009, the economy shrank 2.4%, the most since 1946

Meanwhile, sales of existing homes unexpectedly plunged 7.2% in January to an annual rate of 5.05 million units, a seven-month low, following December's record 16.2% plunge.