US economy ends 2015 on better note, starts 2016 with a bang

Economists are expecting stronger consumer spending, which accounts for two-thirds of economic activity, to lift overall economic growth in the new year after a fourth-quarter slowdown.

In a separate report, the government said the gross domestic product, the broadest measure of economic health, grew at an annual rate of 1 percent in the fourth quarter.

The latest GDP figure does little to change the fact that growth in the final months of 2015 was modest.

[...] global weakness and financial market turbulence have triggered worries about the potential fallout on the U.S. economy.

"First-quarter GDP growth is on track to rebound to a very healthy 2.5 percent (rate) which should dampen any concerns about an imminent recession," said Paul Ashworth, chief U.S. economist at Capital Economics.

"The decline in stock prices is something to watch out for, but consumer spending is being helped by rising home prices that are boosting household wealth, continued solid job growth and increased wage growth," Faucher said.