According to official data, the US economy grew by 1.4% on an annual basis in Q4 2015.
The US Department of Commerce revised its GDP for the fourth quarter of the year from the initial estimate of 0.7%.
Overall, the US economy grew by 2.4% for the whole of 2015.
One of the reasons for the revised figure was higher consumer spending than initially thought by employees, boosted by the improving labor market.
Analysts expected the growth rate in the fourth quarter to remain unchanged from the latest estimate of 1%.
Increased employment has helped slowly raise wages and house prices, while low oil prices have increased discretionary spending by US households.
A stronger growth rate could increase the chances of raising interest rates when the Federal Reserve gathers in April. The Fed left interest rates unchanged at its March meeting, saying the slowing global economy was raising risks for the US market.
US corporate profits fell 11.5% in Q4 from the same period from October to December last year.
Companies have been hurt by low oil prices, and some industry and oil companies have been forced to lay off their workers or go bankrupt.