economic growth

Consumers earned a little more in January and spent most of the extra money. The modest gains should keep the economy growing slowly. But they disappointed economists, who were expecting bigger increases after two months of strong hiring. The Commerce Department said Thursday that consumer spending increased 0.2 percent in January.

U.S. factories grew in January at the fastest pace in seven months, boosted by a rise in new orders. And builders ended a poor year for construction by spending more on homes and projects for the fifth straight month. The reports bolster other data showing the U.S. economy started the year strong.

The U.S. economy grew at a 2.8 percent annual rate in the final three months of last year, the fastest growth in 2011. Americans spent more on cars and trucks, and companies restocked their shelves at the strongest pace in nearly two years. But growth in the October-December quarter -- and all of last year -- was held back by the biggest annual government spending cuts in four decades.

A new economic forecast calls for the U.S. economy to make some modest growth strides this year, but not quite enough to significantly reduce the number of jobless Americans looking for work.

The final weeks of 2011 were among the economy's strongest as Americans shopped and traveled more, ending the year with a shot of optimism for 2012. That's the bright picture the Federal Reserve sketched in a survey released Wednesday.

The U.S. economy grew a little slower over the summer than the government had earlier estimated because businesses cut back more sharply on restocking of shelves. The Commerce Department says the economy grew at an annual rate of 2 percent in the July-September quarter, lower than an initial 2.5 percent estimate made last month.

Over the past year, the prices of many commodities have risen at record paces to record highs. But recently, those prices have begun to plunge, and consumers should begin to see the effects of those declines fairly soon, in the form of less-expensive groceries and clothing.

The Dow Jones industrial average closed its best start to the year since 1999 Thursday, rising 6.4% in the first three months. The index of 30 large companies gained 742 points in that stretch -- the largest point gain since 1998 and the second best on record.

Online retailer Overstock.com ended its last fiscal year on a strong note, and now it's gearing up for an international expansion. Outspoken CEO Patrick Byrne discusses the company, as well as his views on sales tax, short selling and the economy.

The economy appears to be heading into a rare, but oft-predicted, scenario of strong growth and low inflation called "Goldilocks." While it's been called before, experts might be right this time around.