BEA: Real GDP increased at 2.6% Annualized Rate in Q4 - InvestingChannel

BEA: Real GDP increased at 2.6% Annualized Rate in Q4

From the BEA: Gross Domestic Product: Fourth Quarter 2017 (Advance Estimate)

Real gross domestic product (GDP) increased at an annual rate of 2.6 percent in the fourth quarter of 2017, according to the “advance” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 3.2 percent.

The increase in real GDP in the fourth quarter reflected positive contributions from personal consumption expenditures (PCE), nonresidential fixed investment, exports, residential fixed investment, state and local government spending, and federal government spending that were partly offset by a negative contribution from private inventory investment. Imports, which are a subtraction in the calculation of GDP, increased.

The deceleration in real GDP growth in the fourth quarter reflected a downturn in private inventory investment that was partly offset by accelerations in PCE, exports, nonresidential fixed investment, state and local government spending, and federal government spending, and an upturn in residential fixed investment. Imports, which are a subtraction in the calculation of GDP, turned up.
emphasis added

The advance Q4 GDP report, with 2.6% annualized growth, was below expectations.

Personal consumption expenditures (PCE) increased at 3.8% annualized rate in Q4, up from 2.2% in Q3.   Residential investment (RI) increased at a 11.6% pace. Equipment investment increased at a 11.4% annualized rate, and investment in non-residential structures decreased at a 1.4% pace.

I’ll have more later …

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