GDP Maintains Steady Pace
The second (revised) estimate of 4th quarter U.S. gross domestic product showed little change from last month’s advance estimate, the Bureau of Economic Analysis reported Thursday.
BEA said real GDP increased at an annual rate of 2.7 percent in the fourth quarter. The first estimate reported GDP at 2.9 percent In the third quarter, real GDP increased by 3.2 percent. The updated estimates primarily reflected a downward revision to consumer spending that was partly offset by an upward revision to nonresidential fixed investment Imports, which are a subtraction in the calculation of GDP, were revised up.
The increase in real GDP in the fourth quarter reflected increases in private inventory investment, consumer spending, nonresidential fixed investment, federal government spending and state and local government spending that were partly offset by decreases in residential fixed investment and exports. Imports decreased (table 2).
From the third quarter, deceleration in real GDP in the fourth quarter primarily reflected a downturn in exports and decelerations in consumer spending, nonresidential fixed investment, and state and local government spending. These movements were partly offset by an upturn in private inventory investment, a smaller decrease in residential fixed investment, and an acceleration in federal government spending. Imports decreased less in the fourth quarter than in the third quarter.
