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Thursday, February 28, 2019 Contact: Jeannine Aversa, (301) 278-9003 GDP INCREASES IN FOURTH QUARTER “Initial” estimate of GDP Real gross domestic product (GDP) increased 2.6 percent in the fourth quarter of 2018, according to the “initial” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 3.4 percent. Quarter-to-Quarter Growth in Real GDP 5 4 Percent Fourth-quarter GDP highlights The increase in real GDP reflected increases in consumer spending, business investment, exports, and inventory investment. These contributions were partly offset by a decline in housing investment. Imports, a subtraction in the calculation of GDP, increased. 3 2 1 0 The increase in consumer spending reflected Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 increases in both goods and services. The 2015 2016 2017 2018 Real GDP growth is measured at seasonally adjusted annual rates. main contributors to the increase in goods were motor vehicles and "other" nondurable goods, mainly prescription drugs. An increase in health care was the leading contributor to services. Q4 The increase in business investment reflected increases in intellectual property products and equipment. Prices Prices of goods and services purchased by U.S. residents increased 1.6 percent in the fourth quarter after increasing 1.8 percent in the third quarter. Excluding food and energy, prices rose 1.8 percent – the same rate as in the third quarter. Annual GDP growth For the year 2018, real GDP increased 2.9 percent, compared with 2.2 percent in 2017. 3 Percent The increase in real GDP in 2018 reflected increases in consumer spending, business investment, exports, government spending, and inventory investment. These contributions were partly offset by a small decrease in housing investment. Imports increased. Annual Growth in Real GDP 4 2 1 0 2015 2016 2017 2018 Prices of goods and services purchased by U.S. residents increased 2.2 percent in 2018, compared with an increase of 1.9 percent in 2017. Excluding food and energy, prices increased 2.1 percent after increasing 1.8 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 next estimate of GDP for the fourth quarter of 2018 will be released on March 28, 2019.