Fourth Quarter GDP Grew at 1.9%

Real GDP for the fourth quarter of 2016 grew at a seasonally adjusted annual rate of 1.9%, according to the Bureau of Economic Analysis’s revised estimate, unchanged from the advance estimate. The general picture of economic growth remained the same.

The change in GDP reflected an upward revision to personal consumption expenditures that was offset by downward revisions to nonresidential fixed investment and state and local government spending.

The upward revision to consumer spending reflected upward revisions to both goods and services. The nonresidential fixed investment downward revision was due to downward revisions to equipment and to intellectual property products.

Real GDP grew at 1.6% in 2016, a slower pace than the 2.6% rate in 2015. The yearly increase was due to positive contributions from PCE, residential fixed investment, state and local government spending, and exports that were partly offset by negative contributions from private inventory investment and nonresidential fixed investment.

Read the GDP release.