Real GDP growth slowed to 2.1 percent in the fourth quarter, from 3.5 percent in the third quarter. Nondurable goods manufacturing was the leading contributor to the deceleration in real GDP in the fourth quarter. Real value added for the industry group decreased 7.1percent, after decreasing 0.4 percent in the third quarter. The larger decrease was primarily attributed to petroleum and coal products manufacturing.
Finance and insurance, retail trade, and professional, scientific and technical services were the leading contributors to the increase in U.S. economic growth in the fourth quarter of 2016. According to gross domestic product (GDP) by industry statistics released by the Bureau of Economic Analysis, 19 of 22 industry groups contributed to the overall 2.1 percent increase in real GDP in the fourth quarter.
For the finance and insurance industry group, real value added increased 6.3 percent in the fourth quarter, after increasing 9 percent in the third quarter. The fourth quarter growth primarily reflected increases in Federal Reserve banks, credit intermediation, and related activities, as well as insurance carriers and related activities.
Retail trade increased 5.7 percent, after increasing 2.6 percent. The fourth quarter growth primarily reflected an increase in other retail, which includes gasoline stations, as well as building material and garden equipment and supplies stores.
Professional, scientific, and technical services increased 3.6 percent, after increasing 2.6 percent. This was the eleventh consecutive quarter of growth and primarily reflected increases in miscellaneous professional, scientific, and technical services, which includes industries like architectural and engineering services; scientific research and development services; and management consulting services.
Real gross output increased in the fourth quarter. This reflected increases in real gross output for both the private goods- and services-producing sectors, while the government sector decreased. Overall, real gross output increased in 18 of 22 industry groups.
Real gross output for retail trade increased 8 percent, after increasing 2. 5 percent in the third quarter. Information services increased 1.5 percent, after increasing 8.5 percent. The increase was primarily attributed to broadcasting and telecommunications, which has increased for fifteen consecutive quarters. Professional, scientific, and technical services increased 3.9 percent, after increasing 1. 9 percent, primarily reflecting growth in legal services.
Real GDP increased 1.6 percent in 2016. The private goods- and services-producing sectors, as well as the government sector, contributed to the increase. Growth was widespread, with 19 of 22 industry groups contributing to the increase. Information services, professional, scientific and technical services, and health care and social assistance were the leading contributors to the increase in real GDP.
Information services real value added increased 6.4 percent in 2016, after increasing 7.5 percent in 2015. This was the seventh consecutive annual increase. Professional, scientific and technical services increased 3.3 percent, after increasing 5.1 percent. Health care and social assistance increased 3 percent, after increasing 4.5 percent, primarily reflecting an increase in ambulatory health care services.
