Final domestic demand decreased 0.2 percent after flat second and third quarters. The decline was the result of lower business gross fixed capital formation, mainly in non-residential structures.
Business gross fixed capital formation decreased 1.7 percent, the fourth consecutive quarterly decline, as business investment in non-residential structures and machinery and equipment fell 3.3 percent.
Household final consumption expenditure rose 0.2 percent, following a 0.5 percent increase in the third quarter. Expenditure on services (+0.4 percent) largely contributed to the growth.
Government spending increased 0.4 percent after a flat third quarter.
Exports of goods and services decreased 0.6 percent, following a 2.6 percent gain in the third quarter. Imports were down 2.3 percent, the third consecutive quarterly decline.
Businesses reduced their inventories by $4.0 billion, after accumulating $1.0 billion in the previous quarter. Non-farm inventories were down $3.6 billion, after a $2.3 billion accumulation in the third quarter.
Expressed at an annualized rate, the GDP rose 0.8 percent in the fourth quarter, after increasing 2.4 percent in the third quarter.
The economy advanced 1.2 percent in 2015, about half the pace recorded in 2014, as lower business gross fixed capital formation constrained economic growth.