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Tuesday, February 28, 2017
Contact: Jeannine Aversa, (301) 278‐9003

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

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.

Quarter‐to‐Quarter Growth in Real GDP

6

2

0

‐2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2013

Revisions
Real GDP was unrevised for the quarter. Notable
underlying revisions include:




2014

2015

2016

Real GDP growth is measured at seasonally adjusted annual rates.

An upward revision in consumer spending, both in services and goods;
A downward revision to business investment, mostly in intellectual property products and
equipment;
A downward revision to state and local government spending, primarily in structures.

Prices
Prices of goods and services purchased by U.S. residents increased 1.9 percent in the fourth quarter
after increasing 1.5 percent in the third quarter. Excluding energy and food, prices rose 1.5 percent after
increasing 1.7 percent.

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

3
Percent

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

2
1
0

These contributions were partly offset by declines
in private inventory investment and business
investment. Imports increased.

2013

2014

2015

2016

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 “third” estimate of GDP for the
fourth quarter of 2016 will be released on March 30, 2017.