The Bureau of Economic Analysis (BEA) released its “preliminary” estimate of 0.6% annualized growth in the inflation-adjusted (“real”) gross domestic product (GDP) for the 4^th quarter (
http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm).  Overall real GDP growth was unrevised from an earlier “advance” estimate (revisions to the various components of GDP offset each other).  Real GDP grew at a 4.9% rate in the 3^rd quarter of this year. 



Highlights of today’s GDP report:

Ø 
The preliminary
estimate of 4^th-quarter GDP growth is the same as the advance
estimate (issued last month), primarily reflecting a downward revision to
imports that was largely offset by a downward revision to inventory investment.

Ø 
The increase in
real GDP in the 4^th quarter primarily reflected consumer spending
(which grew 1.9%), business investment spending (which grew 6.9%), state and
local government spending (which grew 4.0%), and exports (which grew
4.8%). 

Ø 
Partly offsetting
the factors that contributed positively to real GDP growth were a decline in
residential investment (which decreased 25.2%, compared with a decrease of
20.5% in the 3^rd quarter) and the change in inventory investment
(which subtracted 1.49 percentage points from the 4^th-quarter change
in real GDP).    

Ø 
The decline in
residential investment in the 4^th quarter shaved 1.25% off of real
GDP growth.

Ø 
Residential
investment has declined for eight consecutive quarters, reducing real GDP
growth over that period by an average of 0.88 percentage point.

·        
Over that same
period, export growth has added to real GDP growth by an average of 0.95
percentage point.

Ø 
There have been
25 consecutive quarters of expansion of the Nation’s GDP, with growth
averaging 2.7% over that period.

Ø 
Real GDP growth
has averaged 2.5% over the past four quarters.