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FRIDAY, February 28, 2014 GDP GROWTH DECELERATES IN FOURTH QUARTER Growth Revised Down Real gross domestic product (GDP) increased 2.4 percent in the fourth quarter of 2013, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was 0.8 percentage point less than the “advance” estimate released in January. In the third quarter, the growth rate was 4.1 percent. Also contributing to the slowdown: a larger decrease in federal government spending and downturns in housing investment and in state and local government spending. Quarter-to-Quarter Growth in Real GDP 6 4 Percent Fourth-quarter GDP highlights The slowdown in real GDP growth reflected a slowdown in inventory investment. GDP less inventory investment (final sales of domestic product) rose 2.3 percent, almost as much as the 2.5 percent growth in the third quarter. 2 0 -2 In contrast, exports, consumer spending, and business investment each accelerated. I II III 2010 IV I II III 2011 IV I II III 2012 IV I II III 2013 IV Real GDP growth is measured at seasonally adjusted annual rates Fourth-quarter revisions The revision to real GDP growth reflected the incorporation of newly available, higher quality source data. The following were revised down: Consumer spending on both goods and services; the revisions were widespread. Inventory investment, led by wholesale trade industries. Exports, mainly nonautomotive capital goods and consumer goods. State and local government spending, mainly investment in structures. In contrast, business investment was revised up, mainly in equipment and in software. Annual GDP highlights For the full year 2013, real GDP increased 1.9 percent, the same as the previous estimate. In 2012, the growth rate was 2.8 percent. Business investment slowed, reflecting slower growth in structures (mainly power and communication) and in equipment (mainly transportation). Federal government spending declined more in 2013 than in 2012. Consumer spending on services slowed. Percent Annual Real GDP Growth 4 3 2 1 0 2010 2011 2012 2013 In contrast, imports slowed, state and local government spending declined less, and consumer spending on goods accelerated. 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 “third” estimate of GDP for the fourth quarter of 2013 and an estimate of corporate profits will be released on March 27, 2014. Contact: Jeannine Aversa (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce