US GDP Growth Revised Higher to 2.9% in Q4


The US economy expanded an annualized 2.9 percent on quarter in the last three months of 2017, higher than 2.5 percent in the second estimate and beating market expectations of 2.7 percent. Personal consumption expenditures and private inventory investment were revised up.

Personal consumption expenditure (PCE) contributed 2.75 percentage points to growth (2.58 percentage points in the second estimate) and rose 4 percent (3.8 percent in the second estimate). Services (2.3 percent compared to 2.1 percent in the second reading) and nondurables (4.8 percent compared to 4.3 percent) rose more than anticipated while durables (13.7 percent compared to 13.8 percent) increased less.

Fixed investment added 1.31 percentage points to growth (1.29 percentage points in the second estimate) and increased 8.2 percent (8.1 percent in the second estimate). Investment rose more than expected for structures (6.3 percent compared to 2.5 percent). On the other hand, residential (12.8 percent compared to 13 percent in the second estimate); equipment (11.6 percent compared to 11.8 percent); and intellectual property products (0.8 percent compared to 2.4 percent) rose less. 

Private inventories subtracted 0.53 percentage points from growth, compared to -0.7 percent in the second estimate. 

Meanwhile, exports jumped 7 percent (7.1 percent in the second estimate) and imports surged 14.1 percent (14 percent in the second estimate). As a result, the impact from trade was -1.16 percent, worse than -1.13 percent in the second estimate.

Government spending and investment added 0.51 percentage points to growth (0.49 percentage points in the second estimate). It increased 3 percent, compared to 2.9 percent.

Considering full 2017, the economy expanded 2.3 percent, higher than 1.5 percent in 2016 and in line with the previous estimates.

US GDP Growth Revised Higher to 2.9% in Q4


BEA | Joana Taborda | joana.taborda@tradingeconomics.com
3/28/2018 12:46:53 PM