The advance estimate from the national income and product accounts revealed that real gross domestic product (GDP) rose at a 4.0% annual rate during the fourth quarter of 2003, a little less than most forecasters had expected. Major contributors to the increase in real GDP included personal consumption expenditures, exports, equipment and software, inventory investment, and residential fixed investment. Personal consumption expenditures rose 2.6%, less than the third quarter’s 6.9% increase and less than 2003 as a whole. Exports posted substantial growth of 19.1% (annualized) and contributed 1.69 percentage points to total output growth. In an encouraging sign for business activity, equipment and software rose 17.6% in the third quarter and 10% in the fourth.
Suggested citation: "Economic Activity," Federal Reserve Bank of Cleveland, Economic Trends, no. 04-02, pp. 10-11, 02.01.2004.