US real gross domestic product (GDP) increased at an annual rate of 2.1 per cent in the fourth quarter of 2019, according to the ‘advance’ estimate released by the Bureau of Economic Analysis (BEA). In the third quarter, real GDP increased 2.1 per cent. The ‘second’ estimate for the fourth quarter, based on more complete data, will be released on February 27.
The increase in real GDP in the fourth quarter reflected positive contributions from personal consumption expenditures (PCE), federal government spending, state and local government spending, residential fixed investment and exports, which were partly offset by negative contributions from private inventory investment and non-residential fixed investment, according to a BEA press release.
Real GDP growth in the fourth quarter was the same as that in the third. In the fourth quarter, a downturn in imports, acceleration in government spending and a smaller decrease in non-residential investment were offset by a larger decrease in private inventory investment and a slowdown in PCE.
Current dollar GDP increased by 3.6 per cent, or $191.7 bn, in the fourth quarter to a level of $21.73 trillion. In the third quarter, GDP increased by 3.8 percent, or $202.3 bn. Current-dollar personal income increased $148.7 bn in the fourth quarter, compared with an increase of $162.6 bn in the third quarter. Real GDP increased 2.3 percent in 2019 (from the 2018 annual level to the 2019 annual level), compared with an increase of 2.9 per cent in 2018.
