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WEDNESDAY, January 30, 2013

GDP DECLINES SLIGHTLY IN FOURTH QUARTER
Advance Estimate of GDP
Real gross domestic product (GDP) decreased 0.1 percent in the fourth quarter of 2013 after increasing 3.1 percent
in the third quarter, according to estimates released today by the Bureau of Economic Analysis. For the full year
2012, real GDP increased 2.2 percent after increasing 1.8 percent in 2011.
Quarter-to-Quarter Growth in Real GDP
6
4
2
Percent

Fourth-quarter highlights
The decline in real GDP growth in the fourth
quarter reflected the following:
• Inventory investment turned down, mainly
because of a decline in inventory investment
in manufacturing industries.
• Federal government spending fell significantly, reflecting a downturn in defense
spending (for more information, see the
technical note).
• Net exports turned down, mainly reflecting a
decrease in exports of goods; food, feeds,
and beverage items as well as civilian aircraft, engines, and parts fell significantly.

0
-2
-4
-6
I

II III
2009

IV

I

II III
2010

IV

I

II III
2011

IV

I

II

III
2012

IV

Real GDP growth is measured at seasonally adjusted annual rates.

In contrast, business investment turned up, as
spending on equipment and software rebounded (mainly computers and related parts as well as transportation
equipment). Consumer spending also picked up (mainly financial services as well as autos and parts).
Gross domestic purchases prices
Prices of goods and services purchased by U.S. residents rose 1.3 percent in the fourth quarter, following a 1.4 percent rise in the third quarter. Energy prices slowed, and food prices turned up. Excluding food and energy, prices
rose 1.1 percent in the fourth quarter, compared with 1.2 percent in the third quarter.

The contributions were partly offset by slowdowns in consumer spending (mainly on services and nondurable goods) and in exports
(mainly industrial supplies and materials).

Annual Real GDP Growth

3
2
1
Percent

Annual highlights
The pickup in economic growth for the full
year 2012 mainly reflected:
• A slowdown in imports, notably in capital
goods (except autos) and consumer goods.
• A rebound in residential housing.
• An upturn in inventory investment.
• A smaller decrease in state and local government spending.

0
-1
-2
-3
-4
2009

2010

2011

2012

BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and economic
data for states, local areas, and industries—are available on the BEA Web site: www.bea.gov. E-mail alerts are also available.
NOTE: The second estimate of GDP for the fourth quarter of 2012 will be released on February 28, 2013.
Contact: Ralph Stewart or Jeannine Aversa (202) 606-2649

Bureau of Economic Analysis, U.S. Department of Commerce