us economy shows solid gdp growth the us economy has grown more than expected  expanding at an annual rate of 3.8% in the last quarter of 2004.  the gross domestic product figure was ahead of the 3.1% the government estimated a month ago. the rise reflects stronger spending by businesses on capital equipment and a smaller-than-expected trade deficit. gdp is a measure of a country s economic health  reflecting the value of the goods and services it produces.  the new gdp figure  announced by the commerce department on friday  also topped the 3.5% growth rate that economists had forecast ahead of friday s announcement. growth was at an annual rate of 4% in the third quarter of 2004 and for the year it came in at 4.4%  the best figure in five years. however  the positive economic climate may lead to a rise in interest rates  with many expecting us rates to rise on 22 march. in the january-to-march quarter  the economy is expected to grow at an annual rate of about 4%  economists forecast. in the final quarter of 2004  businesses increased spending on capital equipment and software by 18%  up from 17.5% in the third quarter. consumer spending grew 4.2% in the final quarter  down from the third quarter s 5.1%.