WASHINGTON (Reuters) - The U.S. economy finished 2001 with more momentum than previously thought, a government report released on Thursday said, as it shook off the lingering effects of the Sept. 11 attacks even as American corporate profits remained under pressure.

The stronger-than-expected report supports the view of many analysts that the economy has likely turned the corner on one of the most shallow recessions in U.S. history and is now in a recovery phase. Forecasts for first-quarter growth hover in the 4 percent to 5 percent range, as consumers continue to spend and companies rebuild depleted inventories.

Still, firms found their bottom lines under pressure in the fourth quarter. Corporate after-tax profits fell by $50.4 billion in the quarter after a $34.7 billion drop in the third quarter. It was the biggest quarterly decline since the first quarter of 1998. For 2001, after-tax profits dipped by 15.9 percent, the first decline since 1982's 17.1 percent drop, Commerce said.

Analysts polled by Reuters had expected growth to come in at 1.4 percent annual rate previously estimated.

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