U.S. Economy Grew 0.9% in 4th Quarter : Gross Product: Revised figures still reflect the slowest pace in three years.

The U.S. economy grew 0.9% in the fourth quarter of 1989, faster than previously estimated but still the slowest pace in more than three years, the government said today.

The Commerce Department said its revised estimate of October-December growth means the gross national product--the nation’s total output of goods and services--rose 3% for all of 1989.

That was the slowest yearly advance since a 2.7% gain in 1986 and followed a 4.4% increase in 1988.

The fourth-quarter gain was stronger than the initial report last month of 0.5% growth but was still the lowest since a 0.8% advance in the third quarter of 1986.

A consensus of economists had indicated in advance of the new report that fourth-quarter growth would be lowered to 0.4%.

The improvement should ease fears that the economy entered a downturn at year’s end, although there is considerable anxiety over the months ahead.

The department will make one more revision in the GNP, the broadest measure of the nation’s economic health, after more solid information is available next month.

A recession usually is defined as two consecutive quarterly declines in the GNP. The last decline was a one-quarter drop of 1.8% in 1986, after which the economy resumed growth. The last recession occurred in 1981-82.

Since then, the economic expansion has continued for 87 months and in November broke the peacetime growth record. If it continues through October, 1991, it will set a new overall record.

An inflation index tied to the GNP rose 4.5% last year, the report said. The fourth-quarter figure was revised downward from the 3.8% annual rate reported initially to 3.6% today.

Some economists, including Chairman Michael J. Boskin of President Bush’s Council of Economic Advisers, had attributed the sluggishness in the fourth quarter in part to the effects of the fourth- coldest December on record, Hurricane Hugo and the San Francisco Bay Area earthquake.

Most of the upward revision was attributed to a better than anticipated trade performance. The December trade deficit was not available when the advance GNP estimate was made.

The new report said exports climbed at an annual rate of 8.6% in the fourth quarter, compared with the advance estimate of 4.9%. Imports grew 2% in the revised report instead of the 7.5% first reported.

Business inventories, meanwhile, were lowered from an initial 48.9% increase to a 19.6% gain today.

Other changes included personal consumption, up 0.4% rather than the 0.1% decline first reported.

But business investment declined 6.4% in the latest estimate, compared with a 3% decline in the first.