US GDP Growth Revised Up To 2.1% In Q4



The US economy advanced an annualized 2.1 percent on quarter in the fourth quarter of 2016, higher than 1.9 percent in the previous estimates, final figures showed. Consumer spending and inventories increased faster than anticipated while investment rose less and net trade subtracted more from growth. In 2016, the GDP expanded 1.6 percent, the lowest since 2011.

Personal consumption expenditure (PCE) contributed 2.4 percentage points to growth (2.05 percent in the second estimate) and rose 3.5 percent (3 percent in the second estimate). Spending increased more than anticipated for nondurable goods (3.3 percent compared to 2.8 percent) and services (2.4 percent compared to 1.8 percent) but rose slightly less for durable goods (11.4 percent compared to 11.5 percent).

Fixed investment added 0.46 percentage points to growth (0.51 percentage points in the second estimate) and increased 2.9 percent, compared to a 3.2 percent expansion in the previous release. Investment rose less for intellectual property products (1.3 percent compared to 4.5 percent); growth was steady for equipment (1.9 percent) and residential (9.6 percent). Investment in structures fell at a slower 1.9 percent (-4.5 percent).

Private inventories added 1.01 percentage points to growth, above 0.94 percentage points in the second estimate. It is the biggest contribution since the first quarter of 2015.

Meanwhile, exports shrank 4.5 percent (-4 percent in the second estimate) and imports jumped 9 percent (8.5 percent), bringing the impact from trade to -1.82 percent (-1.7 percent in the second estimate). 

Government spending and investment added 0.03 percentage points to growth (0.06 percent in the previous release) and rose 0.2 percent (0.4 percent in the preliminary estimates).

Considering full 2016, private investment slumped for the first time since 2009 (-1.6 percent, the same as in the second estimate), dragged down by structures (-2.9 percent from -3 percent) and equipment (-2.9 percent). Consumer spending  rose 2.7 percent, the same as in earlier estimates and public spending and investment increased 0.8 percent, unchanged form earlier estimates. Exports went up 0.4 percent and imports rose 1.2 percent (1.1 percent in the second estimate). 

US GDP Growth Revised Up To 2.1% In Q4


BEA | Joana Taborda | joana.taborda@tradingeconomics.com
3/30/2017 1:13:41 PM