Real GDP in Q4 Increased at an Annual Rate of 2.7%, BEA Reports in Its “Second” Estimate

The Bureau of Economic Analysis (BEA) released today (2-23-23) its “second” estimate for 2022Q4 real gross domestic product (GDP). According to the report, GDP increased at an annual rate of 2.7%. This follows a reported real GDP increase of 3.2% in Q3.

The “second” GDP estimate released today is based on more complete data than were available for the “advance” estimate issued last month. In the “advance” estimate, the increase in real GDP was 2.9%. The updated estimate primarily reflects a downward revision to consumer spending, which was partly offset by an upward revision to nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, were revised higher.

The increase in real GDP Q4 reflects increases in private inventory investment, consumer spending, nonresidential fixed investments, federal government spending, and state and local government spending, which were partially offset by decreases in residential fixed investment and exports. Imports, which are a subtraction in the calculation of GDP, decreased.

The third and final estimate for Q4 is scheduled to be released on March 30th.