GDP Revised to 1.4 Percent in Fourth Quarter

Real GDP for the fourth quarter of 2015 grew at an annual rate of 1.4 percent, according to the Bureau of Economic Analysis’s third estimate. GDP was revised up from the second estimate of 1.0 percent growth. During the third Quarter, GDP grew at a rate of 2.0 percent. The fourth quarter’s deceleration in growth reflected slowdowns in nonresidential fixed investment and in state and local government spending, as well as lower personal consumption expenditures.

Consumption was the largest contributor to GDP, accounting for 1.66 percent of growth, down from 2.04 percent during the third quarter. Consumption spending grew by $68.3 billion in the fourth quarter, down from growth of $83.5 billion in the third.

Net exports were a significant drag on GDP, subtracting 0.14 percent from growth, as an $8.2 billion increase in services exports was not enough to offset a $19.9 billion decline in goods exports. Nonresidential fixed investment also underperformed, subtracting 0.27 percent from GDP.

Federal government spending increased during the quarter, contributing 0.15 percent to GDP. This was offset by a decline in state and local government spending, which fell 0.13 percent.

Read the Census release.