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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.