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FRIDAY, February 27, 2015

GDP INCREASES IN FOURTH QUARTER
“Second” estimate of GDP
Real gross domestic product (GDP) increased 2.2 percent in the fourth quarter of 2014, according to the “second”
estimate released by the Bureau of Economic Analysis. The growth rate was 0.4 percentage point less than the
“advance” estimate released in January. In the third quarter, real GDP increased 5.0 percent.

Other contributors:
 Business investment increased, notably in
intellectual property products.
 Exports of goods and services increased;
foods, feeds, and beverages was the largest
contributor.
 State and local government spending increased.

Quarter-to-Quarter Growth in Real GDP
6

4

Percent

Fourth-quarter GDP highlights
The increase in GDP in the fourth quarter was
more than accounted for by consumer spending,
which rose 4.2 percent, compared with 3.2 percent in the third quarter. Spending on both goods
and services increased in the fourth quarter.

2

0

-2

-4
I

II III
2011

IV

I

II III
2012

IV

I

II III
2013

IV

I

II III
2014

IV

Real GDP growth is measured at seasonally adjusted annual rates.

Offsetting these contributions to growth, imports increased, and federal government spending on national defense
decreased.
Fourth-quarter revisions
The revision to the change in real GDP mainly reflected a downward revision to nonfarm inventory investment
and an upward revision to imports. These contributions were partly offset by upward revisions to business investment and to state and local spending. For more information, see the technical note.

Annual GDP highlights
For the year 2014, real GDP rose 2.4 percent after rising 2.2 percent in 2013.
Percent

Contributing to the increase in 2014:
 Consumer spending on both services and
goods increased.
 Business investment increased, most notably
in equipment.
 Exports of goods increased, notably in industrial supplies and materials.

Annual Growth in Real GDP
4
3
2
1
0
2011

2012

2013

2014

Offsetting these contributions, imports increased,
and federal government spending decreased.
Prices of goods and services purchased by U.S. residents increased 1.4 percent in 2014 after increasing 1.3 percent
in 2013.
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 and an estimate of corporate profits for the fourth quarter of 2014 will be released on March 27, 2015.
Contact: Jeannine Aversa (202) 606-2649

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