Real gross domestic product – the value of the goods and services produced by U.S. economy less the value of the goods and services used up in production, adjusted for price changes – increased at an annual rate of 0.7 percent in the fourth quarter of 2015, according to the advance estimate released by the Bureau of Economic Analysis.
In the third quarter, real GDP increased 2 percent.
The increase in real GDP in the fourth quarter primarily reflected positive contributions from personal consumption expenditures, residential fixed investment and federal government spending that were partly offset by negative contributions from private inventory investment, exports and nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
The deceleration in real GDP in the fourth quarter primarily reflected a deceleration in PCE and downturns in nonresidential fixed investment, in exports, and in state and local government spending that were partly offset by a smaller decrease in private inventory investment, a deceleration in imports and an acceleration in federal government spending.
Real gross domestic purchases – purchases by U.S. residents of goods and services wherever produced – increased 1.1 percent in the fourth quarter, compared with an increase of 2.2 percent in the third.
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