GDP Increases in Fourth Quarter

Real gross domestic product (GDP) increased 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.

q2q gdp feb 26GDP highlights
The fourth-quarter increase in real GDP mainly reflected a rise in consumer spending. Spending on services increased, notably on health care. Spending on durable goods also increased, notably on recreational goods and vehicles. Spending on nondurable goods also increased. Residential investment and federal government spending also contributed to real GDP growth. Partly offsetting these contributions, exports, business investment, state and local government spending, and inventory investment each declined. In addition, imports, a subtraction in the calculation of GDP, increased.

Revisions
The upward revision to real GDP growth reflected the following:

  • An upward revision to inventory investment, notably in retail trade industries and mining, utilities, and construction industries
  • A downward revision to imports, notably in industrial supplies and materials.

These contributions were partly offset by downward revisions to state and local government spending and to consumer spending.

Annual GDP growth

For the year 2015, real GDP increased 2.4 percent, the same as in 2014.ANNUAL GDP Feb 26

  • Consumer spending was the largest contributor to growth. Spending increased on
    services, notably healthcare. Spending on durable and nondurable goods also increased.
  • Business investment, residential investment, inventory investment, state and local
    government spending, and exports also increased.
  • Imports, a subtraction in the calculation of GDP, increased, partly offsetting the contributions to growth.Prices of goods and services purchased by U.S residents increased 0.4 percent in 2015, compared with a 1.5 percent increase in 2014. Excluding food and energy, prices rose 1.0 percent in 2015 after rising 1.6 percent in 2014.

Prices of goods and services purchased by U.S residents increased 0.4 percent in 2015, compared with a 1.5 percent increase in 2014. Excluding food and energy, prices rose 1.0 percent in 2015 after rising 1.6 percent in 2014.

For more information, read the full report.

 


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