WASHINGTON, D.C. - The U.S. economy had a better showing the latter part of 2011, with Americans reporting more earnings than before, the Associated Press reports. That positive news could mean a brighter outlook for 2012.

The U.S. Department of Commerce revealed this week that the economy grew at a 3% annual rate from October to December, the quickest advances since spring 2010. The growth rate was higher than the estimated rate of 2.8%.

Consumers opened their wallets more than anticipated, with businesses slashing spending less than expected. The report found that incomes jumped more than anticipated during the second half of 2011.

With the economy on a steady track to improvement, businesses began to purchase inventory again, which drove much of the fourth-quarter growth. Many companies had reduced inventories earlier in the year because of fears of another recession.

Economic analysts forecast growth of 2% annual rate during the first quarter of 2012, with 2012 registering a 2.4% growth for the entire year. Consumer confidence reached the highest levels in a year last month, according to the Conference Board. That could mean Americans will spend more in the coming months.

High gasoline prices are of concern, but most analysts don€™t feel consumers will halt spending, given more companies are hiring and incomes have risen.