Friday, February 27, 2015

Fourth Quarter Growth Down from Initial Estimate

U.S. Real GDP for the fourth quarter increased at a rate of 2.2%, noticeably lower than the initial estimate of 2.6% and substantially lower than the 5% growth achieved in quarter three.

Consumption contributed 2.8% to growth, up from 2.2% in the third quarter, yet GDP fell due to a decrease in net exports and a decline in government spending.

Rising dollar values and weak oil prices contributed to the decline in exports. Net exports provided a drag of 1.2% on fourth quarter growth compared to a 0.8% boost in the third quarter. Government spending decreased lowering growth by 0.3%, largely due to a reduction in national defense spending which decreased by 12.4% compared to an increase of 16% in quarter three.

For the year as a whole, GDP increased by 2.4 percent reflecting positive contributions from personal consumption expenditures, nonresidential fixed investment, exports, state and local government spending and private inventory investment.

Read the BEA release.

No comments:

Post a Comment

Please read our comment policy before making a comment.