Keeping you up to date on the latest data releases.
The annualized percent change in real GDP for the fourth quarter of 2013 was revised down from 3.2 percent to 2.4 percent, based on the second estimate. The downward adjustment to GDP growth primarily reflects downward revisions to consumption, inventories, and net exports, which were partially offset by an upward revision to business fixed investment.
Personal consumption expenditures are now estimated to have increased 2.6 percent for the quarter, compared to a previous estimate of 3.3 percent. This change primarily reflects a downward revision to goods consumption, while services consumption was also adjusted down slightly. The net result was a reduction in the contribution of consumption to GDP growth from 2.3 percentage points to 1.7 percentage points.
The contribution of business fixed investment to GDP was revised up from 0.5 percentage points to 0.9 percentage points, as business fixed investment is now estimated to have increased 7.3 percent for the quarter. Partially offsetting this was a downward revision to inventory investment, which is now estimated to have contributed 0.1 percentage points, compared with a previous estimate of 0.4 percentage point. Residential investment was largely unchanged from the previous release.
The increase in exports for the quarter was revised down from 11.4 percent to 9.4 percent, while the increase in imports was revised up from 0.9 percent to 1.5 percent. This resulted in a reduction in the contribution of net exports to GDP growth, from 1.3 percentage points to 1.0 percentage point. Additionally, government spending is now estimated to have subtracted 1.1 percentage points from GDP growth for the quarter, compared with a previous estimate of 0.9 percentage points.