The numbers: The pace of growth in the economy in the fourth quarter of 2017 was boosted to 2.9% from 2.5%, reflecting the biggest increase in consumer spending in three years and higher investment in business inventories.

Economists polled by MarketWatch had forecast an annualized 2.8% reading in the government’s latest revision of gross domestic product.

The U.S. fell just short of a closely watched 3% growth marker after racking up gains of 3.2% in the 2017 third quarter and 3.1% in the second quarter. It would have been the first time since 2004-2005 that the economy expanded 3% in three straight quarters.

Corporate earnings in the fourth quarter were effectively flat.

What happened: The economy got a big lift from consumer spending at the end of the year and businesses also increased investment.

In the government’s latest GDP update, consumer spending was revised to show a 4% increase instead of 3.8%. That’s the largest gain since the end of 2014.

The increase in spending was mostly tied to higher outlays on transportation services such as plane rides and package delivery.

Businesses also spent a bit more than previously estimated. Investment in structures such as office buildings and drilling platforms was raised to 6.3% from 2.5%.

The value of unsold goods, or inventories, was also revised up sharply to $15.6 billion.

Other key figures in the GDP report such as imports, exports, government spending and inflation were basically unchanged.

Adjusted pretax profits fell 0.1% in the final three months of the year, but they increased 4.4% in 2017, the Commerce Department said Wednesday. Profit figures are adjusted for depreciation and the value of inventories.

Big picture: The U.S. economy ended 2017 on fairly high note, but it may have gotten off to a softer start in the new year. Most economists predict GDP will grow less than 2% in the first quarter owing to slower spending by consumers and businesses.

That’s been a common theme for years. The economy appears to slow in the first quarter, only to speed up later in the year. Winter weather is one cause, a problem compounded by persistent troubles by the government in smoothening out seasonal quirks.

The overall economy, however, appears to be in good shape. Hiring is strong, unemployment is low and recent tax cuts are putting more money in people’s pockets. Accordingly, the U.S. is likely to grow even faster this year than it did in 2017, when GDP rose 2.3%.