Friday, March 27, 2015

Fourth Quarter GDP Estimate Remains Unchanged

The third estimate of U.S. Real GDP for the fourth quarter of 2014 increased at a rate of 2.2%, unchanged from last month’s “second” estimate. Personal consumption expenditures contributed 3% to growth, up from 2.8% in the previous estimate.

Rising dollar values and weak oil prices contributed to the decline in net exports, dragging GDP growth by 1.03% compared to a 1.15% drag in the second estimate. Government spending declined by 0.4%, largely due to a reduction in national defense spending which decreased by 12.4% compared to an increase of 16% last quarter.

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

Read the BEA release

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