Many experts feared a recession. Instead, the economy has continued to soar

The U.S. economy continues to defy expectations.

The nation's gross domestic product — the broadest measure of economic activity — grew at an annual pace of 3.3% in October, November, and December, according to a report Thursday from the Commerce Department.

That was substantially faster than forecasters had expected.

It was a fitting end to a year of robust economic growth, defying projections that rising interest rates would tip the economy into recession.

Here are five things to know about the economy.

Consumers lead the way

Consumer spending is the biggest driver of the U.S. economy, and Americans kept their foot on the gas — eating out in restaurants, buying sporting goods, and paying for travel.

Personal spending grew at an annual pace of 1.9% in the fourth quarter, only a modest slowdown from the three months before.

That was fueled by a better-than-expected labor market, with solid job growth and rising wages.

"Consumers are hanging tough," said Mark Zandi, chief economist of Moody's Analytics. "They're spending just enough to keep the economy moving forward but not so much that it would fan inflationary pressures."

Firing on all cylinders

Other parts of the economy are also holding up well.

Government spending, business investment and exports all rose in the fourth quarter. Even the housing sector, which has been battered by mortgage rates that neared 8% in October, was not the drag on the economy that one would typically expect.

"Housing usually in a high-rate environment gets crushed," Zandi said. "It's the thing that drives the economy into the ground. And that just didn't happen this time around."

Instead, new home construction helped make a small positive contribution to GDP.

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