US Real GDP Increases at an Annual Rate of 2.4% in Q4, BEA Reports in Its “Third” Estimate

On Thursday, the Bureau of Economic Analysis (BEA) released its “third” estimate for Q4 real gross domestic product (GDP). Real GDP increased at an annual rate of 2.4% in Q4, following an increase of 3.1% in Q3.

The “third” estimate was revised up 0.1 percentage point from the “second” estimate, primarily reflecting a downward revision to imports.

The increase in real GDP in Q4 primarily reflected increases in consumer spending and government spending that were partly offset by a decrease in investment. Imports, which are a subtraction in the calculation of GDP, decreased.

Compared to Q3, the deceleration in real GDP in Q4 primarily reflected downturns in investment and exports that were partly offset by an acceleration in consumer spending. Imports turned down.

From an industry perspective, the increase in real GDP reflected an increase of 2.3% in real value added for private goods-producing industries, an increase of 2.4% for private services-producing industries, and an increase of 2.7% for government.