The US economy expanded at a faster pace in the fourth quarter than previously estimated while a key measure of inflation was revised lower.

Gross domestic product increased at a 2.4% annualized rate in the October-to-December period, the third release of the figures from the Bureau of Economic Analysis showed Thursday, while the Federal Reserve’s preferred inflation metric — the personal consumption expenditures price index excluding food and energy — was revised down to 2.6%.

The GDP numbers were boosted by upward revisions to net exports, government spending and business investment. Growth in consumer spending — which accounts for two-thirds of GDP — was marked lower to 4%.

Economists generally anticipate slower growth in 2025 as consumers and businesses grow wary of President Donald Trump’s economic agenda. The administration’s aggressive trade policy prompted Fed officials last week to mark down their forecasts, and Wall Street giants including Goldman Sachs and Morgan Stanley have made similar changes.

The February PCE report, which will show the latest data on consumer spending and inflation, is due Friday.

The government’s other main gauge of economic activity — gross domestic income — rose 4.5% after a 1.4% increase in the third quarter. While GDP measures spending on goods and services, GDI measures income generated and costs incurred from producing them. The average of the two growth measures last quarter was 3.5%, the most in a year.

A separate report Thursday showed initial applications for unemployment benefits were little changed at 224,000 last week. Continuing claims fell to 1.86 million, the lowest in a month, in the most recent period.