Gross Domestic Product Increases in the Fourth Quarter

According to the latest (third) estimate released by the U.S. Department of Commerce, Bureau of Economic Analysis (BEA) real gross domestic product increased 2.1% in the fourth quarter of 2019. The growth rate is the same as in the “second” estimate released in February. In the third quarter, real GDP also increased 2.1%. The fourth-quarter increase in real GDP reflected increases in consumer spending, government spending, exports, and housing investment, which were partially offset by decreases in inventory investment and business investment. Imports, a subtraction in the calculation of GDP, also decreased. According to the analysis the increase in consumer spending reflected increases in goods (led by vehicles and parts) and services (led by health care). The increase in government spending reflected increases in both federal as well as state and local government.