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May 27, 2004 9:00 AM, EDT

The U.S. economy grew at a rate of 4.4% in the first quarter of 2004, the Commerce Department said Thursday.

The report reflected a change from the department’s previous estimate of 4.2% growth in gross domestic product, Commerce said.

GDP is the value of all the goods and services produced in the country.

Analysts said that the growing economy is allowing businesses to continue hiring new workers and expanding capacity, Bloomberg News reported.

Adjusted for inflation, GDP totaled $10.7 trillion at an annual rate, Commerce said.

Businesses increasing their inventories contributed 0.75% to the GDP growth. Overall, companies increased their inventories $28.2 billion at an annual rate, Commerce said.

Consumer spending rose 3.9% from January to March. Consumer purchases account for roughly two-thirds of GDP. Business fixed investment rose 5.8% during the quarter and government spending ticked 2.9% higher.