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4Q2015 GDP preliminary estimate increased 1.0%
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Real gross domestic product -- the value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production, adjusted for price changes -- increased at an annual rate of 1.0 percent in the fourth quarter of 2015, according to the "second" estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 2.0 percent.
The GDP estimate released today is based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, the increase in real GDP was 0.7 percent. With this second estimate for the fourth quarter, the general picture of economic growth remains the same; private inventory investment decreased less than previously estimated.
The increase in real GDP in the fourth quarter reflected positive contributions from personal consumption expenditures (PCE), residential fixed investment, and federal government spending that were partly offset by negative contributions from exports, nonresidential fixed investment, state and local government spending, and private inventory investment. Imports, which are a subtraction in the calculation of GDP, decreased.
The deceleration in real GDP in the fourth quarter primarily reflected a deceleration in PCE and downturns in nonresidential fixed investment, in state and local government spending, and in exports that were partly offset by a smaller decrease in private inventory investment, a downturn in imports, and an acceleration in federal government spending.
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 1.2 percent in the fourth quarter, compared with an increase of 2.2 percent in the third.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 0.4 percent in the fourth quarter, compared with an increase of 1.3 percent in the third. Excluding food and energy prices, the price index for gross domestic purchases increased 1.0 percent, compared with an increase of 1.3 percent.
Current-dollar GDP -- the market value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production -- increased 2.0 percent, or $88.2 billion, in the fourth quarter to a level of $18,148.4 billion. In the third quarter, current-dollar GDP increased 3.3 percent, or $146.5 billion.
The upward revision to the percent change in real GDP primarily reflected an upward revision to private inventory investment and a downward revision to imports that were partly offset by downward revisions to state and local government spending and to personal consumption expenditures.
Posted: February 26, 2016 Friday 08:30 AM