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The annualized percent change in real GDP for the third quarter of 2013 was revised up from 2.8 percent to 3.6 percent, based on the second estimate. The improvement in GDP growth primarily reflects an upward revision to inventory investment. Also contributing to the positive revision were slight improvements to business fixed investment and government spending, which were partially offset by slight downward revisions to consumption, residential investment, and net exports.
The contribution of changes in private inventories to GDP growth was revised up from 0.8 percentage points to 1.7 percentage points, accounting for most of the upward revision to the annualized percent change in overall GDP. Business fixed investment is now estimated to have increased 3.5 percent during the third quarter—compared with a prior estimate of 1.6 percent—and is now estimated to have contributed 0.4 percentage points to the increase in GDP. Additionally, the increase in government spending was revised up from 0.2 to 0.4 percent, and the contribution of government spending to GDP growth was 0.1 percentage point.
Personal consumption expenditures were revised down slightly, increasing 1.4 percent and contributing 1.0 percentage point to GDP growth for the quarter. Residential investment is now estimated to have increased 13 percent, compared with a prior estimate of 14.6 percent. Exports remained essentially unchanged, but an upward revision to imports (from a 1.9 percent increase to a 2.7 percent increase) resulted in an downward revision to net exports. Residential investment and net exports contributed 0.4 percentage points and 0.1 percentage point to the increase in GDP, respectively.