Real gross domestic product in the fourth quarter decreased slightly from the previous estimate, according to the second estimate from the Bureau of Economic Analysis.
Real GDP increased at an annual rate of 2.5% in the fourth quarter, down from 2.6% in the first estimate and down from 3.2% in the third quarter of 2017.
Today’s GDP estimate is based on more complete source data than was available for the advance estimate issued last month, but will be followed by one final estimate for the fourth quarter in March.
The report explained that while the estimated GDP did drop slightly from the previous estimate, the general picture of economic growth remains the same.
The chart below shows that 2017 had two strong quarters in the middle of the year, but that growth fell off in the final quarter.
Click to Enlarge
(Source: BEA)
The increase in real GDP in the fourth quarter reflected positive contributions from personal consumption expenditures, exports, nonresidential fixed investment, residential fixed investment, state and local government spending and federal government spending. However, these were partly offset by a negative contribution from private inventory investment. Imports, which are a subtraction in the calculation of GDP, increased.
Here are updates to the previous estimate:
Current-dollar GDP: Decreased to 4.9%, down from last estimate’s 5%
Gross domestic purchases price index: Held steady at 2.5%
Personal consumption expenditures: Decreased to 2.7%, down from last estimate’s 2.8%
