US GDP Growth Revised Down to 2.4% in Q4


Real gross domestic product in the United States increased at an annual rate of 2.4 percent in the fourth quarter of 2013 compared with the 3.2 percent gain issued last month as consumer spending and exports grew less than initially thought.

The increase in real GDP in the fourth quarter primarily reflected positive contributions from PCE, exports, nonresidential fixed investment, and private inventory investment that were partly offset by negative contributions from federal government spending, residential fixed investment, and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.

The deceleration in real GDP growth in the fourth quarter reflected a deceleration in private inventory investment, a larger decrease in federal government spending, and downturns in residential fixed investment and in state and local government spending that were partly offset by accelerations in exports, in PCE, and in nonresidential fixed investment and a deceleration in imports.

The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 1.5 percent in the fourth quarter, 0.3 percentage point more than in the advance estimate; this index increased 1.8 percent in the third quarter.  Excluding food and energy prices, the price index for gross domestic purchases increased 1.8 percent in the fourth quarter, compared with an increase of 1.5 percent in the third.

Real personal consumption expenditures increased 2.6 percent in the fourth quarter, compared with an increase of 2.0 percent in the third.  Durable goods increased 2.5 percent, compared with an increase of 7.9 percent.  Nondurable goods increased 3.5 percent, compared with an increase of 2.9 percent.  Services increased 2.2 percent, compared with an increase of 0.7 percent.

Real nonresidential fixed investment increased 7.3 percent in the fourth quarter, compared with an increase of 4.8 percent in the third.  Nonresidential structures increased 0.2 percent, compared with an increase of 13.4 percent.  Equipment increased 10.6 percent, compared with an increase of 0.2 percent.  Intellectual property products increased 8.0 percent, compared with an increase of 5.8 percent. Real residential fixed investment decreased 8.7 percent, in contrast to an increase of 10.3 percent.

Real exports of goods and services increased 9.4 percent in the fourth quarter, compared with an increase of 3.9 percent in the third.  Real imports of goods and services increased 1.5 percent, compared with an increase of 2.4 percent.

Real federal government consumption expenditures and gross investment decreased 12.8 percent in the fourth quarter, compared with a decrease of 1.5 percent in the third.  National defense decreased 14.4 percent, compared with a decrease of 0.5 percent.  Nondefense decreased 10.1 percent, compared with a decrease of 3.1 percent.  Real state and local government consumption expenditures and gross investment decreased 0.5 percent, in contrast to an increase of 1.7 percent.

The change in real private inventories added 0.14 percentage point to the fourth-quarter change in real GDP, after adding 1.67 percentage points to the third-quarter change.  Private businesses  increased inventories $117.4 billion in the fourth quarter, following increases of $115.7 billion in the third quarter and $56.6 billion in the second.

Real final sales of domestic product -- GDP less change in private inventories -- increased 2.3 percent in the fourth quarter, compared with an increase of 2.5 percent in the third.

Real GDP increased 1.9 percent in 2013 (that is, from the 2012 annual level to the 2013 annual level), compared with an increase of 2.8 percent in 2012.

US GDP Growth Revised Down to 2.4% in Q4


Bureau of Economic Analysis | anna@tradingeconomics.com
2/28/2014 1:45:51 PM