US GDP Growth Revised Up to 1%


The US economy expanded an annualized 1 percent on quarter in the last three months of 2015, higher than a preliminary figure of 0.7 percent, according to the second estimate released by the Bureau of Economic Analysis. Business inventories were revised higher and the negative impact from trade came lower than expected while consumer spending was revised down.

Personal consumption expenditure (PCE) contributed 1.38 percentage points to growth (1.46 percent in the advance estimate) and rose 2 percent (2.2 percent in the advance estimate). Spending on both durable goods (3.4 percent from 4.3 percent in the advance estimate) and nondurable goods (1.2 percent from 1.5 percent in the advance estimate) grew at a slower pace while consumption in services increased more than expected (2.1 percent from 2 percent). 

Fixed investment added a meager 0.02 percentage points to growth (0.03 percent in the advance estimate) and expanded at a slower 0.1 percent (0.2 percent in the advance estimate). Nonresidential investment shrank 1.9 percent (-1.8 percent in the advance estimate), mainly due to lower structures (-6.6 percent from -5.3 percent in the advance estimate) while equipment investment decreased less than anticipated (-1.8 percent from -2.5 percent in the advance estimate). Residential investment increased 8 percent, lower than 8.1 percent in the advance estimate. 

Private inventories subtracted 0.14 percentage points from the growth, compared to a 0.45 percentage points decrease earlier estimated. Businesses accumulated $81.7 billion worth of inventory, compared to $68.6 billion earlier reported, mainly boosted by retail trade, mining, utilities and construction. 

Meanwhile, exports shrank at a faster 2.7 percent (-2.5 percent in the advance estimate) while imports contracted 0.6 percent, compared to a 1.1 percent increase earlier reported and bringing the impact from trade to -0.25 percent from -0.47 percentage points earlier reported.

Government spending and investment subtracted 0.01 percentage points from growth compared to a 0.12 percentage points increase reported earlier, down 0.1 percent from the third quarter.


US GDP Growth Revised Up to 1%


BEA | Joana Taborda | joana.taborda@tradingeconomics.com
2/26/2016 2:13:53 PM