Real gross domestic product increased at an annual rate of 2.1% in the fourth quarter of 2019, according to the third estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP also increased 2.1%.
The GDP estimate is based on more complete source data than were available for the second estimate issued last month. In the second estimate, the increase in real GDP was also 2.1%. In the third estimate, an upward revision to personal consumption expenditures was largely offset by downward revisions to federal government spending and nonresidential fixed investment.
The increase in real GDP in the fourth quarter reflected positive contributions from PCE, exports, residential fixed investment, federal government spending, and state and local government spending that were partly offset by negative contributions from private inventory investment and nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, decreased.
Real GDP growth in the fourth quarter was the same as that in the third. In the fourth quarter, a downturn in imports and an acceleration in government spending were offset by a larger decrease in private inventory investment and a slowdown in PCE.
Real gross domestic income increased 2.6% in the fourth quarter, compared with an increase of 1.2% in the third quarter. The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 2.4% in the fourth quarter, compared with an increase of 1.7% in the third quarter.
Current‑dollar GDP increased 3.5%, or $186.6 billion, in the fourth quarter to a level of $21.73 trillion. In the third quarter, current-dollar GDP increased 3.8%, or $202.2 billion.
The price index for gross domestic purchases increased 1.4% in the fourth quarter, the same increase as in the third quarter. The PCE price index increased 1.4%, compared with an increase of 1.5%. Excluding food and energy prices, the PCE price index increased 1.3%, compared with an increase of 2.1%.