U.S. economic activity in the final three months of 2012 increased at a faster rate than previously estimated, according to a report released by the Commerce department on Thursday.

The report showed that GDP increased at an annual rate of 0.4 percent in the fourth quarter compared to the previously reported 0.1 percent increase.

The Commerce Department said the stronger than previously estimated growth primarily reflected upward revisions to non-residential fixed investment and to exports that were partly offset by a downward revision to consumer spending.

Despite the upward revision, the pace of GDP growth still came in below economist estimates for an increase of 0.6 percent.

The upwardly revised pace of GDP growth in the fourth quarter also still reflects a substantial slowdown from the 3.1 percent growth seen in the third quarter.

The report showed that the pace of consumer spending growth was downwardly revised to 1.8 percent from 2.1 percent, although the increase still reflects an acceleration from the 1.6 percent growth seen in the third quarter.

The Commerce Department also said its reading on core consumer prices, which exclude food and energy prices, rose by an upwardly revised 1.0 percent in the fourth quarter following a 1.1 percent increase in the third quarter.