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Friday, January 27, 2017
Contact: Jeannine Aversa, (301) 278‐9003

GDP INCREASES IN FOURTH QUARTER
“Advance” estimate of GDP
Real gross domestic product (GDP) increased 1.9 percent in the fourth quarter of 2016, according to the
“advance” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP
increased 3.5 percent.
Quarter‐to‐Quarter Growth in Real GDP

6

4
Percent

Fourth‐quarter GDP highlights
The increase in real GDP reflected an increase in
consumer spending, private inventory investment,
residential investment, business investment, and
state and local government spending. These
contributions were partly offset by declines in
exports and federal government spending. Imports,
which are a subtraction in the calculation of GDP,
increased.

2

0

‐2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Prices
2013
2014
2015
2016
Prices of goods and services purchased by U.S.
Real GDP growth is measured at seasonally adjusted annual rates.
residents increased 2.0 percent in the fourth quarter
after increasing 1.5 percent in the third quarter. Excluding energy and food, prices rose 1.4 percent after
increasing 1.7 percent.

Personal income and personal saving
Real disposable personal income—personal income adjusted for taxes and inflation—increased 1.5
percent in the fourth quarter after increasing 2.6 percent in the third quarter. Personal saving as a
percentage of disposable personal income was 5.6 percent in the fourth quarter, compared with 5.8
percent in the third quarter.

The increase in real GDP in 2016 reflected increases
in consumer spending, residential investment, state
and local government spending, exports, and
federal government spending.

Annual Growth in Real GDP
4
3
Percent

Annual GDP growth
For the year 2016, real GDP increased 1.6 percent,
compared with 2.6 percent in 2015.

2
1
0

2013

2014

2015

2016

These contributions were partly offset by declines
in private inventory investment and business investment. Imports increased.
Prices of goods and services purchased by U.S residents increased 1.0 percent in 2016, compared with
an increase of 0.4 percent in 2015. Excluding food and energy, prices increased 1.4 percent after
increasing 1.1 percent.
BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and
regional economic data—are available at www.bea.gov. E-mail alerts are also available. The “second” estimate of GDP for the
fourth quarter of 2016 will be released on February 28, 2017.

Q4