A report from the Commerce Department showed on Thursday that the U.S. economy expanded slightly more than initially estimated in the fourth quarter of 2020, reflecting the upward revisions to residential fixed investment, private inventory investment, and state and local government spending, which were partly offset by a downward revision to personal consumption expenditures (PCE).

According to the second estimate, the U.S. gross domestic product (GDP) grew at a 4.1 percent annual rate in the fourth quarter, slightly faster than a 4.0 percent advance reported in the advance estimate.

Economists had expected the decline rate to be revised to 4.2 percent, following the third quarter's surge of 33.4 percent.

The increase in real GDP in the fourth quarter reflected gains in exports, nonresidential fixed investment, PCE, residential fixed investment, and private inventory investment that were partly offset by declines in state and local government spending and federal government spending. Meanwhile, imports, which are a subtraction in the calculation of GDP, rose.